BP reports sharp Q2 profit surge to $5.7 billion amid Middle East conflict and high energy prices

Britain's BP on Tuesday reported a sharp upswing in second-quarter profit, as energy supermajors reap massive profits from higher fossil fuel prices amid hostilities between the U.S. and Iran.

The oil giant posted underlying replacement cost profit, used as a proxy for net profit, of $5.7 billion for the April to June period. That comfortably beat analyst expectations of $5 billion, according to an LSEG-compiled consensus.

BP's net profit came in at $2.35 billion over the same period last year and $3.2 billion for the first three months of 2026.

The results come as oil and gas prices have surged amid the sprawling Middle East conflict. The fighting has severely disrupted shipping through the strategically vital Strait of Hormuz, a narrow maritime choke point that typically handles around a fifth of the world's oil and natural gas.

U.S. President Donald Trump on Monday lashed out at U.S. oil majors Exxon Mobil and Chevron for making "too much money" off higher fuel prices amid the Iran war, reiterating his demand for lower prices at the pump.

"They're making too much money based on a shortage," Trump told reporters at the White House. "I don't like it."

Exxon's second-quarter profits more than doubled to $14.5 billion compared to a year ago, while Chevron's earnings soared by nearly 400% to $12 billion compared to $2.5 billion in the same period last year. CNBC has reached out to Exxon and Chevron for comment.

Key highlights from Q2:

BP increased its dividend by 4% to 8.66 cents per ordinary share for the second quarter.

Operating cash flow came in at $10.9 billion after taking into account a $1 billion adjusted working capital build.

Net debt came in at $22.25 billion at the end of the second quarter, down from $25.3 billion at the end of March.

BP CEO Meg O'Neill said the second-quarter results were underpinned by a strong performance across the group and responded to Trump's criticism of Big Oil.

"Look, I understand the pressure that the ordinary household feels when they pull into the service station to fill up and see the prices. The reality is we produce a global commodity and the prices for the product we sell hangs off that global commodity price," O'Neill told CNBC's "Squawk Box Europe" on Tuesday.

"What BP is doing is making sure that we are focused on the things we can do to try to help address the situation. We're driving hard on reliability, both on our upstream assets where we produce those barrels and the refining assets where we refine them."

O'Neill said the company had made adjustments to how the firm's refining runs are set up to maximize the availability of products consumers most need at any point in time, citing jet fuel and diesel as an example.

Analysts at Citi said BP's significant quarter-on-quarter reduction in net debt means the company has now lost its unwanted place as the highest-levered of the international oil companies, with further reductions expected in the second half of the year.

"The scrapping of share buybacks at 4Q results undoubtedly a key contributor; the decision to raise dividends by 4% a partial acknowledgement of the improved financial strength," the analysts said in a research note.