BP PLC announced that its oil trading business delivered an "exceptionally strong" performance in the first quarter. The energy giant stated in a recent trading update that it expects its net debt to be in the range of $25 billion to $27 billion by the end of the first quarter. BP's official first-quarter earnings report is scheduled for release on April 28.
The company attributed the outstanding results from its trading division to unexpected gains driven by a surge in oil prices following the outbreak of the Iran war in late February. This trading update, issued ahead of the formal earnings release later this month, echoes a similar performance update released by its competitor Shell last week.
However, BP also informed investors that it anticipates an increase in net debt from $22.2 billion in the fourth quarter to a range of $25 billion to $27 billion, citing higher working capital requirements due to increased price volatility.
BP and other major oil companies are expected to report significant profits, impacted by disruptions to global supply and soaring oil and gas prices resulting from the US-Iran conflict. Commenting on recent trading conditions, BP noted that the average Brent crude price was $81.13 per barrel in the first quarter of 2026, compared to $63.73 per barrel in the fourth quarter of 2025.
As of Tuesday, the price for US crude futures for May delivery was approximately $97 per barrel, while the international benchmark Brent crude for June delivery was around $98.6 per barrel.
Global markets remain hopeful that peace talks between the US and Iran can resume. US President Donald Trump stated on Monday that Iran is "very eager to reach a deal." Conversely, US Vice President JD Vance said on Monday that the next step in the peace efforts depends on Iran, following a lack of breakthrough in talks over the weekend.
On Tuesday morning, Reuters reported, citing sources, that related negotiations could resume as early as this week in Islamabad.
The US began a blockade of the Strait of Hormuz oil passageway on Monday, April 13, announcing it would intercept all vessels attempting to enter or leave Iranian ports. When asked if the aim of the blockade was to pressure Iran into reopening the Strait of Hormuz or returning to the negotiating table, President Trump replied, "Both of those things, and certainly more."
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