Shell and BP shares lifted as oil rebounds on breakdown of US-Iran peace talks Proactive uses images sourced from Shutterstock
Shell PLC (LSE:SHEL, NYSE:SHEL) and BP PLC (LSE:BP.) shares moved higher at the start of the week, outperforming a weaker wider market as oil prices surged on the back of failed talks between the US and Iran.
The FTSE 100 fell in early trading, with the two oil majors among the fewer than 20 London blue chips that were heading in the other direction, with Shell rising 1.3% and BP 1.2%.
The gains followed a sharp rebound in crude markets after talks between the US and Iran broke down, raising concerns over supply disruptions.
US President Donald Trump posted overnight that a 20-hour negotiation with Iran over the weekend, led by Vice President JD Vance, “went well” on most points, but there was one major sticking point: “Iran is unwilling to give up its nuclear ambitions”.
The US then threatened its own blockade of oil coming out of the Persian Gulf, with analysts saying the move may be designed to shift the leverage in the conflict and set the stage for further use of military force.
Brent crude climbed almost 7% to just under $101.66 a barrel, lifting energy stocks and offsetting broader market weakness.
Higher oil prices typically support the earnings outlook for producers such as Shell and BP, as they increase the value of each barrel sold.