BP’s “exceptional” trading results as a result of the US war in Iran are proof the government must not scrap the windfall tax, campaigners said today.

The oil giant announced soaring results for oil trading in the first quarter after the cost of crude oil rose sharply because of the US war on Iran.

End Fuel Poverty Coalition co-ordinator Simon Francis said: “BP calling its Iran war windfall ‘exceptional’ tells you everything you need to know about who is winning and who is losing from this crisis.”

He told the Morning Star: “While households face a £480 hit to their finances and are cutting back on heating and food, oil giants are booking record trading profits.”

Ahead of its first-quarter results, BP updated its oil trading guidance for the start of the year following weak numbers in the final quarter of 2025.

It said: “Impacts associated with the ongoing situation in the Middle East and the current market conditions resulting in heightened volatility in crude oil, natural gas and refined products prices in the latter part of the first quarter.

“These market conditions are expected to impact financial results, including trading results and working capital movements.”

Mr Francis added: “As energy bosses see the value of their shareholdings soar and investors get ready for bumper payouts, the case for keeping the windfall tax on energy profits to help households struggling with energy costs has never been stronger.”

Rachel Reeves recently said the government would not repeat the £70 billion subsidies for energy bills after a similar hike in prices following Russia’s invasion of Ukraine.

But despite claims the state cannot afford to help struggling households, the Chancellor indicated she would ease the windfall tax on North Sea oil and gas firms introduced in 2022 before the start of the war in Iran.

The price of oil has surged as a result of the US-Israel war on Iran, up 60 per cent since it started on February 28.

BP said Brent crude prices averaged $81.13 (£60) a barrel over the first quarter as a whole, up from $63.73 (£47) a barrel in the previous three months.

The oil giant said that for every dollar increase in the price per barrel of oil results in a $340 million (£250m) rise in pre-tax operating profits.

Uplift deputy director Robert Palmer told the Star: “While millions of people are worrying over their energy bills, oil companies like BP are raking in billions of profits.

“It’s clear that the UK’s dependence on fossil fuels is making all of us poorer – all except for the oil and gas bosses and their shareholders who once again will cash in at our expense.

“The only way to insulate ourselves from energy shocks and protect the climate is to ramp up on renewables, and upgrade homes with solar power, batteries and heat pumps. We also need to support those who need it most with financial help.”