Shell posted nearly $7 billion in first-quarter profits as the Iran war rattles energy markets, a swing that touched production in Qatar and sent U.S. pump prices higher. The report and related details name Shell, Qatar’s Pearl plant, and U.S. measurements from AAA, and the reporting credits Reuters, The Associated Press and notes the photo credit “FILE-A Shell gas station is shown in Emeryville, California in 2025. (David Paul Morris/Bloomberg via Getty Images).” This story was reported from Washington, D.C.
Shell said its first-quarter net income hit $6.9 billion, a result executives tied to gains from heightened energy prices since the conflict with Iran began. Management also announced a 5% raise to the dividend, signaling confidence in cash flow despite the disruptions. Investors will notice the mix of profit and caution in other balance-sheet moves.
The company’s chemicals and products arm, which includes refining and trading, delivered $1.93 billion in earnings for the quarter, easily outpacing analyst expectations and the prior year’s figures. That number beat a forecast near $1.24 billion and jumped from $450 million in 2025, showing how volatile swings in refining and trading margins can quickly pad results. Traders and refiners have been cashing in as tanker routes and supplies tighten.
At the same time, Shell trimmed its quarterly share buyback program to $3 billion from $3.5 billion, a temporary pullback the company said was aimed at strengthening its balance sheet. Reuters reported the move as a short-term measure to convert assets into cash after war-related supply shocks pushed up the company’s debt. It’s a familiar corporate play: protect liquidity now and resume more generous returns when the outlook steadies.
Production numbers told a different story on the operational side, with Shell’s oil and gas output slipping about 4% compared with the previous quarter. The decline stems largely from outages in Qatar after damage to part of the Pearl gas-to-liquids plant tied to the Iran conflict that started on Feb. 28. Those kinds of plant-level disruptions cascade through contracts, cargoes and regional supply balances.
Looking ahead, Shell warned that integrated gas volumes could face a much steeper drop in the second quarter, forecasting as much as a 36% hit because of fallout tied to the Iran war and related outages. That voluntary guidance underscores the scale of the disruption and suggests the company is bracing for an uneven recovery. Markets hate uncertainty, and energy markets have plenty of it right now.
U.S. consumers are feeling that uncertainty at the pump, too, with national averages nudging higher. AAA reported an average price of $4.56 per gallon on Thursday, a slight uptick from the day before, reflecting how global crude swings feed straight into retail gasoline. For many drivers the change feels immediate even if the underlying mechanics are multi-layered.
Experts point to crude oil prices as the primary driver of what motorists pay at the pump, and public data shows crude accounted for roughly 51% of the price of a gallon of gasoline in 2025. The Energy Information Administration’s breakdown, cited by The Associated Press, makes clear that refining, distribution and taxes make up the rest. That math means big moves in crude translate quickly into big moves for consumers.
Shell’s report is a vivid reminder of how geopolitics and energy markets are intertwined: higher prices can boost profits for producers while simultaneously squeezing consumers and complicating supply chains. Companies like Shell must juggle shareholder returns, capital discipline and operational repairs when plants are damaged and cargoes delayed. The headlines and the numbers will keep shifting as the situation in the Middle East develops.
Information for this story was provided by Reuters, The Associated Press, and AAA, and the reporting for the piece originated in Washington, D.C. The photo credit remains: “FILE-A Shell gas station is shown in Emeryville, California in 2025. (David Paul Morris/Bloomberg via Getty Images).” Expect more corporate updates and market reactions as firms update guidance and the region stabilizes or further disrupts flows.
