Glencore energy trading profits surge 66-fold amid Iran war

Glencore reported on Wednesday that its energy trading profits soared 66-fold in the first half of 2026 compared to a year earlier, while BP ↘ 3.17% posted its highest quarterly profit since 2022, as the Iran war drove oil, fuel, and LNG prices to record or multi-year highs by disrupting tanker traffic through the Strait of Hormuz.

Glencore's Trading Windfall

Glencore booked $2.66 billion in first-half adjusted earnings before interest and taxes from energy trading alone, up from just $40 million in the same period of 2025, when energy trading hit its weakest level in records going back to 2010. The results put the company on track to rebound from three consecutive years of declining energy marketing earnings.reuters+2

"The Oil and Gas department was the primary contributor, which benefited from significant dislocations across LNG, oil and shipping markets," CEO Gary Nagle said. Glencore's crude and fuel trading volumes surged to around 5.2 million barrels per day, roughly 24% above its 2025 average.reuters

The company had previewed the strong performance in late July, when it disclosed that its total marketing division expected first-half profit of about $3.3 billion, putting it within reach of the top end of its annual earnings target of $3.5 billion.finance.yahoo+1

BP's Earnings Surge

BP reported a second-quarter underlying replacement cost profit of $5.73 billion, more than double the $2.35 billion earned a year earlier and its highest quarterly result since Russia's invasion of Ukraine roiled markets in 2022. The figure comfortably beat analyst expectations of roughly $5 billion.news.sky+1

The result followed a first quarter in which BP's profit had already more than doubled to $3.2 billion, driven by what the company called "exceptional" oil trading and stronger midstream operations. That earlier period included only one month of the conflict; the second quarter captured its full effect on prices.reuters+2

War-Driven Market Turmoil

The Iran war, which began on February 28 when a U.S.-Israeli military campaign launched strikes against Iranian nuclear and military facilities, effectively halted tanker traffic leaving the Persian Gulf and sent crude, fuel, and LNG prices to all-time or multi-year highs earlier this year. Looking ahead, Glencore warned that inventory drawdowns had left oil markets "increasingly sensitive to disruptions" in the second half.cnbc+1

Glencore shares rose 3.4% in London trading on Wednesday morning.reuters