Energy giant Shell has reported a significant rise in quarterly earnings, joining rivals in benefiting from a volatile global energy market following the outbreak of the US-Israel war with Iran. The company posted adjusted earnings of $6.92 billion for the first three months of 2026, exceeding analyst expectations.

This is a sharp increase from the $5.58 billion reported during the same period last year. On the back of these results, the company announced a 5% increase in its dividend and a new $3 billion share buyback program. 

Profits were primarily driven by a surge in oil prices, which peaked above $120 a barrel following the effective closure of the Strait of Hormuz-a vital maritime chokepoint for 20% of the world’s oil and gas.

Last week, Shell confirmed a $16.4 billion US deal to acquire Canadian shale producer ARC Resources, a move CEO Wael Sawan says will secure high-quality assets for decades to come. Despite the profit surge, Shell’s actual oil and gas output fell by 4% this quarter. 

This was largely due to conflict-related damage at its Pearl gas plant in Qatar. Much like its rival BP, Shell’s internal trading division capitalized on sharp swings in crude prices, widening the gap between buying and selling to maximize margins.

Environmental groups including Friends of the Earth, have renewed calls for a stricter windfall tax, labeling the profits monstrous while households face an estimated £200 increase in energy bills this July. 

While the UK’s energy price cap currently sits at £1,641, the jump in wholesale costs since the start of the Iran conflict is expected to drive the cap higher when it is revised this summer.