Oil giant shell's profits surge amid iran crisis, renewable energy boost

Energy giant Royal Dutch Shell is poised to report a significant jump in profits from its commodity trading desks in the first quarter, fueled by market volatility triggered by the Iran crisis.

Shell's trading windfall to reach $200m-$700m

The surge in energy commoditymarkets over recent weeks is expected to drive up trading results at Shell's chemicals and products unit, which includes its main oil trading desk. Shell's boss Wael Sawan warned last month that Europe could face an energy shortage in April without a reopening of the strait of Hormuz, currently closed due to tensions with Iran.

Shell's trading performance is also expected to soar in its renewable energy division. The company's gas production is expected to fall by around 5% in the first quarter, partly due to damage to its assets in Qatar by Iranian strikes. However, this will be partly offset by the ramp up of production from its LNG Canada venture.