BP reported a sharp upswing in second-quarter profit on Tuesday, posting $5.7 billion for the April to June period. The surge comes as U.S. President Donald Trump criticized oil majors for reaping excessive profits from high fuel prices triggered by hostilities between the U.S. and Iran.
The financial results for BP beat analyst expectations of $5 billion, according to an LSEG-compiled consensus. This underlying replacement cost profit of $5.7 billion reflects a significant jump from the $2.35 billion the company earned in the same period last year and the $3.2 billion reported for the first three months of 2026.
Trump’s White House Critique of Exxon and Chevron
The windfall for energy companies has drawn sharp condemnation from the Oval Office. On Monday, President Donald Trump told reporters at the White House that U.S. oil majors are making too much money
based on a supply shortage. He specifically targeted Exxon Mobil and Chevron, demanding that these corporations return a portion of their profits to the public and reduce retail fuel prices.
The scale of these earnings is stark. Combined net profits for ExxonMobil and Chevron reached $29 billion in the second quarter.
“In a supply shortage, they (major oil companies) are making too much money. I don’t like that.”
Donald Trump, U.S. President
Trump’s frustration extended to Chevron CEO Mike Wirth via Truth Social, where the president claimed Wirth failed to acknowledge that his success was due to the Trump administration’s policies. This political pressure arrives as U.S. gasoline prices have climbed more than 30% since the Iran war began, surpassing $4 per gallon.
BP’s Operational Shifts and Management Turmoil
BP CEO Meg O’Neill defended the company’s position, noting that as a producer of a global commodity, prices are dictated by global market trends. She told CNBC that the company is driving hard on reliability across both upstream and refining assets to address the situation.
To maximize availability for consumers, O’Neill stated that BP adjusted refining runs for high-demand products, specifically citing diesel and jet fuel. These operational efforts are part of a broader simplification drive. BP recently completed the sale of its Gelsenkirchen refinery to the Klesch Group, a move expected to lower underlying operating expenditure by approximately $1 billion.
Despite the financial gains, the company is grappling with internal instability. In May, the board abruptly removed chairman Albert Manifold after only eight months, citing serious concerns
regarding conduct, oversight, and governance standards.
The Strait of Hormuz and Global Supply Crises
The profitability of these firms is inextricably linked to the conflict in the Middle East. The International Energy Agency described the current state as the greatest supply crisis in history after Iran seized control of the Strait of Hormuz, a maritime choke point that typically handles about one-fifth of global oil and natural gas.
This volatility has had contradictory effects on the balance sheets of energy giants. While prices surged, physical assets were targeted; BP’s Rumaila oilfield in southern Iraq suffered drone attacks. The resulting multibillion-dollar repair bills are expected to constrain future profits.
The American Petroleum Institute has pushed back against White House pressure for price controls, arguing that high prices are the result of global supply and demand and the uncertainty surrounding the Strait of Hormuz, rather than the actions of individual corporations.
Windfall Taxes and the UK Political Response
In the UK, BP’s profits have reignited demands for tougher windfall taxes. The current energy profits levy is set at 38%, which brings the total headline tax rate on upstream oil and gas activities to 78%.
This stance is particularly acute as the war in Iran is forecast to push UK household energy bills to nearly £2,000 a year starting in July.
- BP Q2 Profit: $5.7 billion (underlying replacement cost)
- ExxonMobil Q2 Profit: $14.5 billion
- Chevron Q2 Profit: $12.2 billion
- UK Windfall Tax Rate: 38% (lifting headline rate to 78%)
Market Volatility and Corporate Bonuses
The disparity between consumer hardship and corporate reward has created a political lightning rod. While retail gasoline prices in the U.S. soared, Chevron paid most employees a special bonus equal to half a month’s base salary. CEO Mike Wirth described these results as the outcome of exceptional efforts in an exceptional situation
.
The broader market remains erratic. Brent crude reached highs of $119.50 a barrel in March before emergency stockpiles cooled the market. As of Tuesday, the price sat at approximately $111 a barrel, the highest level since the US-Iran ceasefire was agreed upon on April 7.
The tension between the Trump administration and the oil industry suggests a shift in the political calculus. By framing oil executives as profiteers during a supply shortage, the administration is attempting to mitigate public anger over inflation ahead of the November midterm elections.
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