Shell has reported quarterly profits approaching $7 billion, emerging as one of the biggest beneficiaries of the oil price surge triggered by the Iran conflict.

According to The New York Times, Shell’s profits significantly exceeded market expectations, driven primarily by sustained high crude prices amid escalating geopolitical tensions. Speaking on the earnings call, Shell’s CEO stated that the oil market is currently in a supply deficit with no quick path to rebalancing.

Since the Iran conflict began, international oil prices have climbed steadily. Markets remain concerned about shipping security in the Strait of Hormuz, a critical chokepoint handling roughly 20% of global crude oil. While US officials have denied reports of military preparations to reopen the strait, ongoing uncertainty continues to support oil prices.

Shell’s strong results stand in sharp contrast to weakness in global manufacturing. Whirlpool warned on the same day that the Iran war and tariff rulings are causing a “recession-level” sales slump, sending its shares down as much as 20%.

Analysts note that the windfall profits in the energy sector versus the economic pressure on ordinary consumers could widen political divisions.

Shell’s Windfall vs Economic Pain

• Shell posts nearly $7B profit driven by Iran war oil surge
• CEO warns oil market is in supply deficit with no quick fix
• Whirlpool warns of recession-level slump from same conflict
• Growing divide between energy sector gains and consumer pain

On April 27, 2026, UK oil and gas giant Shell announced an agreement to acquire Canadian energy company ARC Resources for $13.6 billion in cash and shares, significantly expanding its North American energy production capacity. Including $2.8 billion in assumed net debt, the deal carries an enterprise value of $16.4 billion.

Under the terms of the agreement, ARC Resources shareholders will receive C$8.20 in cash and 0.40247 Shell ordinary shares per ARC share, representing a mix of approximately 25% cash and 75% stock. Following the announcement, ARC Resources shares surged 22% on the Toronto Stock Exchange.

ARC Resources focuses on operations in the Montney shale basin spanning British Columbia and Alberta. Shell said the acquisition will add 370,000 barrels per day of oil and gas production, increase exposure to “long-duration, low-cost and top quartile low carbon intensity shale gas and liquids,” and is expected to generate double-digit returns.

Shell CEO Wael Sawan said: “ARC is a high-quality, low-cost and top quartile low carbon intensity producer operating in the Montney shale basin that complements our existing footprint in Canada and strengthens our resource base for decades to come. We are accessing uniquely positioned assets and welcoming colleagues that bring deep expertise. This establishes Canada as a heartland for Shell while furthering our strategy to deliver more value with less emissions.”

The deal comes amid turbulent global energy markets. Goldman Sachs has raised its oil price forecasts against the backdrop of continued Iran tensions — with Brent crude expected to average $90 per barrel in the final quarter of this year in a base case scenario, and potentially reaching $120 per barrel in an “adverse scenario” involving further supply disruptions.

Shell’s acquisition reflects a broader strategic trend among international energy majors to consolidate low-cost North American shale assets amid geopolitical uncertainty. The move also signals that industry consolidation may be accelerating, as major players seek to secure long-duration production bases.

Source: The Guardian, Reuters