Shell reported a significant increase in profits for the second quarter, with earnings reaching $9.84 billion, more than double the $4.26 billion recorded in the same period last year. This surge is largely attributed to rising oil prices following the outbreak of conflict involving Iran, which disrupted global oil and liquefied natural gas (LNG) supplies through the Strait of Hormuz.
The price of Brent crude, a global benchmark, climbed from around $73 a barrel before the conflict to highs above $120, although it later fell below $100 amid uncertainty over the reopening of key shipping routes. These fluctuations have benefited Shell’s trading operations, enabling the company to capitalize on wider price gaps between buying and selling.
Shell’s CEO Wael Sawan highlighted the company’s strong operational performance despite severe disruptions in the global energy market. Combined with a $6.92 billion profit in the first quarter, Shell’s first-half earnings soared by 70% compared to 2025.
Operational Challenges Amid Conflict
However, the Middle East tensions have impacted Shell’s production capabilities. LNG output from its Qatar facilities has been suspended since March following a missile attack that caused extensive damage to the Pearl gas-to-liquids plant, with repairs expected to take about a year. Gas production dropped from 909,000 barrels of oil equivalent per day in Q1 to 631,000 barrels in Q2. Overall oil and gas production for the first half of the year declined by 16% compared to the previous year, despite new production from Brazil and the Gulf of America.
Market and Environmental Reactions
Energy analysts note that Shell’s integrated business model, combining trading, refining, chemicals, and production, has helped it maintain resilience amid volatile market conditions. Maurizio Carulli of Quilter Cheviot described Shell as a “steady ship” in a rapidly changing industry.
Meanwhile, environmental groups condemned the profits, linking them to the ongoing climate crisis and rising energy costs for consumers. Danny Gross from Friends of the Earth criticized Shell’s gains amid global heatwaves and energy hardship, calling for a shift away from reliance on oil and gas.
