Glencore's trading team has achieved significant profits amid the Iran war, which has disrupted global commodity markets and pushed prices higher. The company announced in a trading update on Thursday that its first-quarter performance indicates full-year core earnings from its marketing unit will "comfortably" surpass $3.5 billion, the top end of its long-term guidance. This would mark a considerable increase from the $2.9 billion generated last year and could put Glencore on track for its best trading result since its record $6.4 billion in 2022.
The primary catalyst for these gains is the sharp disarray in energy markets, particularly after the near-closure of the Strait of Hormuz. This event triggered a global scramble for physical oil, leading to immediately available cargoes of oil and fuel products trading at substantial premiums. Other commodity-trading houses are also reportedly benefiting, with Vitol Group informing banks of approximately $2 billion in first-quarter profits and Trafigura Group experiencing two of its most successful quarters in the six months ending March.
Beyond just commodity prices, the conflict has created the kind of volatility and supply stress that allow large trading desks to generate outsized earnings. CEO Gary Nagle noted that while the Middle East conflict has caused dislocations, especially concerning crude, refined products, and sulfuric acid supply, Glencore's energy marketing business has helped ensure fuel supply to its own assets. Glencore's mining business is also supported by stronger metals prices, with copper, zinc, and coal helping to counteract higher fuel and sulfuric acid costs in its industrial operations. The company saw a 19% increase in copper production in the first quarter, reaching nearly 200,000 tons, due to higher grades in African and South American mines. However, steelmaking coal production dropped 22%, energy coal output decreased 2%, and cobalt production fell 39% to 3,700 tons, mainly due to the Democratic Republic of Congo's export-quota system implemented in late 2025.
