Shell Plc, Europe's biggest oil and gas company, reported a stronger-than-expected profit of $6.92 billion for the first three months of the year. The British oil giant's earnings more than doubled compared to the previous quarter, following similarly strong results from its European rivals.
The surge in profit was driven by the war in Iran, which pushed oil prices to four-year highs and sent fossil fuel prices soaring. The effective closure of the Strait of Hormuz further drove energy prices sharply higher, while increased volatility from the conflict boosted the company's trading business.
Despite these results, the energy major warned of lower production and lowered its buyback from the previous quarter. The Strait of Hormuz remains closed as the oil market hopes the U.S. and Iran will strike a deal to restore energy shipments.