Two teenagers opened fire at a mosque in San Diego, resulting in the deaths of three people. Authorities are investigating the incident, which has raised community concerns about safety.
Europe’s largest energy company, Shell plc, posted stronger-than-expected first-quarter earnings, boosted by higher oil and gas prices amid the Iran war and the closure of the Strait of Hormuz.
Shell’s adjusted earnings rose to $6.9bn (€5.86bn) in the first quarter of 2026, up 24% from $5.6bn (€4.75bn) a year earlier. The company also announced a 5% increase in its dividend and a $3bn share buyback programme over the next three months.
“Shell delivered strong results enabled by our relentless focus on operational performance in a quarter marked by unprecedented disruption in global energy markets,” said Chief Executive Wael Sawan.
Dan Coatsworth, head of markets at AJ Bell, said a key profit driver was the Middle East conflict, which led to a spike in oil prices, allowing Shell to sell its products at much higher prices. He added that the volatility in oil prices created opportunities for Shell’s trading arm.
Before the war, international oil prices were around $70 a barrel. The conflict-driven supply shock pushed Brent crude to a peak of about $126 a barrel, its highest level in over four years. On Thursday morning, Brent futures for next month's delivery fell below $100 amid hopes of a diplomatic breakthrough between the United States and Iran.
Higher crude prices and stronger refining margins helped lift profits across the sector. However, Shell faced operational setbacks, including damage to one of its facilities in Qatar during the conflict and cyclone-related stoppages at a liquefied natural gas site in Australia.
Around 20% of Shell’s oil and gas production comes from the Middle East, exposing the company to potential prolonged disruption in the region. Shell signalled that gas production in Qatar is expected to fall by at least 30% in the second quarter compared with the first quarter of 2026, though it said its assets in Oman remain operational and upstream production has not been affected.
Maurizio Carulli, global energy analyst at Quilter Cheviot, noted that the longer-term question concerns reserve replacement and production growth. He said Shell’s recent acquisition of ARC Resources Ltd., a Canadian producer focused on the Montney shale basin, is a meaningful step in that direction, moving Shell’s production outlook from stagnation to modest but visible growth.
Shell’s sharp profit rise has reignited debate in the UK about extending the windfall tax on energy earnings. Danny Gross, climate campaigner at Friends of the Earth, told the BBC that fossil fuel companies are making large profits while consumers face higher petrol and energy costs, suggesting a stronger windfall tax on fossil fuel profits.
The UK’s current windfall tax applies only to profits generated from oil and gas extraction in the UK, which accounts for less than 5% of Shell’s global production.
Coatsworth said calls for a windfall tax will likely grow louder as Shell and BP plc have reported bumper earnings linked to the Middle East war. He added that “the longer oil prices stay higher, the harder it will be for them to oppose any windfall tax suggestions.”
Shell shares declined about 2% after the results, though analysts stated the drop reflected broader market expectations that shipping through the Strait of Hormuz could soon resume, rather than concerns specific to Shell.
Carulli said, “Shell’s first-quarter numbers were clearly better than expected. The early share price weakness looks entirely macro-driven rather than company-specific, with oil stocks broadly under pressure on hopes of a rapid resolution to the Strait of Hormuz disruption.”
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