Oil giant Shell posted bumper profit of $6.92 billion through the first quarter as the Iran war sent fossil fuel prices soaring , the company reported Thursday. That beat the $6.1 billion median estimate of analysts compiled by Bloomberg, as surging oil and gas prices lifted profits to their highest level in two years .
The windfall comes as the US Department of Defense estimated that Iran had lost $4.8 billion in oil revenue from 13 April to 1 May due to the blockade, with a total of 31 tankers laden with 53 million barrels of Iranian oil being "stuck in the Gulf" . According to market data, WTI crude traded at $71.50 per barrel on Wednesday, up 0.6%, while Brent crude stood at $75.20 per barrel, up 0.5%.
But Shell's gains came with operational pain. Shell faced operational setbacks, including damage to one of its facilities in Qatar during the conflict and cyclone-related stoppages at one of its liquefied natural gas sites in Australia . Shell signalled that gas production in Qatar is expected to fall by at least 30% in the second quarter compared with the first three months of 2026 .
American Drivers Feel the Squeeze
While energy majors celebrate record earnings, U.S. consumers are paying the price at the pump. Gasoline prices across the U.S. surged to an average of $4.54 a gallon on Wednesday, the highest since July 2022, according to AAA data. The price of regular gas has jumped 52%, or $1.56 per gallon, since the start of the Iran war in late February .
MarketWatch spoke with electric vehicle owners who reported no regrets about their purchases. One driver told the outlet that with gas prices over $4.50 per gallon, switching to an EV feels like "money in the bank every week."
Global oil inventories are nearing their lowest point since 2018, raising concerns about a potential supply squeeze, according to a May 4 report by the investment bank. "As the oil tanks go dry, as we use up the last of the inventory, that's when the real crunch is going to start to hit," John Quigley, a senior fellow at the Kleinman Center for Energy Policy at the University of Pennsylvania, told CBS News Philadelphia .
Private Equity Bets Big on U.S. Shale
As global energy markets convulse, private equity is doubling down on American production. Diversified Energy Company and global investment firm Carlyle's Global Credit platform announced that they have entered into an agreement to acquire certain oil and natural gas properties, along with related assets located in the Anadarko Basin of Oklahoma from Camino Natural Resources for approximately $1.2 billion, subject to customary adjustments .
The Financial Times reported that the deal represents a novel financing structure. The acquisition builds on the strategic partnership between Diversified and Carlyle announced in 2025, which combines Carlyle's asset-backed finance capabilities with Diversified's operating expertise to invest in proved developed producing energy assets across the United States. This structure is designed to provide long-term, efficient financing aligned with the assets' production profile, while enabling scaled investment without reliance on traditional corporate financing or equity issuance .
The acquisition expands Diversified's existing Oklahoma footprint and adds roughly 300 MMcfed (about 51,000 boed) of production, along with approximately 1,478 Bcfe of proved reserves .
