BP profits more than double as Iran war sends oil prices higher

BP's profits for the first three months of the year have more than doubled following a surge in oil prices since the beginning of the Iran war.

In its first results since the conflict broke out, the energy giant reported profits of $3.2bn (£2.4bn) between January and March after an "exceptional" performance in its oil trading business.

The figure was far higher than analysts had expected and more than double the $1.38bn it reported in the same period last year.

The results are the first under new chief executive Meg O'Neill, who took over at the beginning of April when her predecessor, Murray Auchincloss, left after less than two years in the role.

The US-Israel conflict with Iran, which began on 28 February, has led to a surge in oil prices, as the key Strait of Hormuz - which usually carries about 20% of the global supplies of oil and liquid natural gas - has been effectively closed.

Brent crude, the global benchmark for oil prices, is currently trading at about $110 a barrel, compared with around $73 before the Iran war began.

O'Neill said she had joined "at a time when our industry is operating in an environment of conflict and complexity".

She added BP had been "working with customers and governments to get fuel where it's needed, helping minimize disruption and the impact it can have on people's lives".

Profits at the company's customers and products division, which includes its oil trading unit, surged to $2.5bn compared with just $103m a year ago.

However, BP said its upstream production - which refers to the search and extraction of oil and gas - had been flat in the quarter.

It also expected production in the second quarter to be lower, partly due to the "effects of disruption in the Middle East".