Shell posts best quarterly profit in four years as Iran war boosts oil and gas prices

British energy major Shell on Thursday reported stronger-than-expected second-quarter profit, benefitting from the jump in oil and gas prices amid the sprawling Middle East conflict.

The oil giant posted adjusted earnings of $9.84 billion for the April to June period, comfortably beating analyst expectations of $8.79 billion, according to an LSEG-compiled consensus. A separate, company-provided analyst forecast had put Shell’s expected second-quarter profit at $8.92 billion.

Shell reported adjusted earnings of $4.26 billion over the same period a year ago and $6.92 billion over the first three months of 2026.

It marks Shell’s best quarterly result since the second quarter of 2022, when the company reported earnings of $11.47 billion as oil and gas prices surged in the wake of Russia’s full-scale invasion of Ukraine.

Shell said it would maintain the pace of its share buyback program at $3 billion over the next quarter.

The bumper result comes as energy majors receive a profit boost from soaring fossil fuel prices amid the Iran war.

Key highlights from Q2:

• Cash flow from operations of $21.4 billion, supported by higher realized prices.
• Net debt came in at $41.75 billion, down from $52.6 billion at the end of the first quarter.
• Capital expenditure outlook for 2026 unchanged at a range of $24 billion to $26 billion.

The U.S. on Wednesday launched its first airstrike in the Middle East since pausing its bombing campaign last week. U.S. Central Command described the strikes as a “powerful response” to Tuesday’s attempted Iranian attacks on American forces in the Middle East.

London-listed shares of Shell have jumped around 21% so far this year, although the company lags the likes of Britain’s BP and France’s TotalEnergies, as well as U.S. majors Exxon Mobil and Chevron.

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