(2) Iran deal optimism lifts markets; anger as Shell’s profits more than double – business live

Shell has become the latest energy giant to report soaring profits since the Iran war began.

Shell has beaten City forecasts by reportinng profits of $6.9bn for the first quarter of 2026 – a period when oil and gas prices jumped and there was dramatic volatility in the energy markets.

That’s up from $3.256bn in the last three months of 2025.

Shell attributes this jump in earnings to its trading division, higher prices and beefier profit margins at its refining business.

It told shareholders:

Adjusted Earnings, compared with the fourth quarter 2025, reflected higher contributions from trading and optimisation mainly impacting our Downstream, Renewables and Energy Solutions businesses, higher realised prices, higher refining margins, lower operating expenses and higher Lubricants margins, partly offset by lower volumes.

This surge in earnings will renew calls for a new windfall tax on the sector.

Anne Jellema, the executive director of climate campaign group 350.org, said:

“While people around the world struggle with soaring energy costs, Shell is raking in billions in added profit. The same crisis that is driving these windfalls is pushing millions closer to hunger and hardship.

“Governments must act now to tax these excess profits and use the money to protect vulnerable households and expand affordable, homegrown renewable energy.

Here’s the full story:

Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.

Global stock markets are continuing to rally today as investors cling to hopes of a deal to end the Iran war.

Asia-Pacific markets have jumped, after strong gains in Europe and the US yesterday on signs of progress in US-Iran negotiations.

Shares pushed higher after US president Donald Trump said said a deal with Iran to end the war was “very possible” after “very good talks” over the past 24 hours.

Japan’s Nikkei 225 index has surged by 5.7% today, as trading resumed after the extended Golden Week holidays, while South Korea’s KOSPI index is up 1.4% and Australia’s S&P/ASX is 1% higher.

Iran is currently reviewing a US peace proposal, after Trump told Tehran to accept a deal to end the war or face a new wave of US bombing.

Yesterday, the FTSE 100 surged by almost 220 points, or 2.15%, to 10,438 points, while on Wall Street the S&P 500 hit a record high.

Oil plunged, ending yesterday almost 8% lower.

Markets are “aggressively pricing a peace dividend across oil, bonds, and currencies”, reports Stephen Innes, managing partner at SPI Asset Management, even though major geopolitical fault lines remain unresolved.

Innes adds:

The market traded like a casino where the fire alarm suddenly stopped ringing just as the champagne carts rolled back onto the floor. The S&P 500 and the Nasdaq Composite surged to fresh all-time highs, but truth be told, this was not merely an American rally. It was a full-blown global melt-up as traders aggressively embraced the idea that the Iran war may finally be shifting from missile trajectories to negotiation tables.

The agenda

• 7am BST: German factory orders

• 8am BST: Riksbank interest rate decision

• 9am BST: Norges Bank interest rate decision

• 9.30am BST: UK construction PMI

• 12.30pm BST: US Challenger job cuts

• 1.30pm BST: US jobless claims