BP flags 'exceptional' oil trading performance as Iran war chokes supply

BP's oil trading desk enjoyed "exceptional" performance during the first quarter, the energy giant said on Tuesday, thanks to a windfall from the surge in oil prices since the start of the Iran war in late February.

The trading statement, published ahead of official results due later this month, came after a similar update from rival Shell last week.

But BP also told investors its net debt at the end of the first quarter was expected to be in the range of $25-27 billion, up from $22.2 billion in the fourth quarter, due to the need for increased working capital amid a more volatile price environment.

BP's first-quarter results are due to be published on April 28.

Oil majors like BP and its peers are expected to see significant windfalls on the back of the U.S.-Iran war which has choked global supplies and sent oil and gas prices rocketing. Remarking on recent trading conditions, BP noted that Brent crude averaged $81.13 per barrel (bbl) in the first quarter of 2026 compared to $63.73/bbl in the fourth quarter of 2025.

As of Tuesday, U.S. crude oil futures for May delivery were trading around $97 a barrel, while international benchmark Brent for June delivery was trading around $98.6/bbl.

Global markets are hanging on to hopes that peace talks between the U.S. and Tehran can resume after U.S. President Donald Trump said Monday that Iran would "like to make a deal very badly."

Separately, U.S. Vice President JD Vance said Monday that the next steps in U.S.-Iran peace efforts now depend on Tehran, after talks at the weekend failed to produce a breakthrough.

News agency Reuters reported on Tuesday morning that talks could resume in Islamabad as soon as this week, according to sources.

The U.S. on Monday began a blockade of the Strait of Hormuz oil passage, saying it would block all ships trying to enter or exit Iranian ports.

Trump was asked on Monday if the goal of the blockade was to force Iran to reopen the Strait of Hormuz or come to the negotiating table. "Both of those things, certainly, and more," the president replied.