Shell and BP: FTSE 100 giants get analyst backing after oil surge 

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Senior City Reporter

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Oil prices have spiked as Israel and Iran ramped up tensions.
Oil prices have rocked markets.

FTSE 100 oil heavyweights are back in analysts favour after oil prices surged from the intensifying Middle Eastern conflict. 

BP and Shell shares have jumped around three per cent in the last week and climbed further as President Donald Trump weighed in on the attacks in Israel and Iran.

Russ Mould, investment director at AJ Bell, said “concerns the US might join Israel’s military effort against Iran” were driving moves in oil, which triggered gains in Shell and BP.

As Trump warned the US’ patience was “wearing thin,” oil prices tipped over $77 per barrel before easing back slightly.

Neil Wilson, UK investor strategist at Saxo, said oil majors were responsible for “keeping the [FTSE 100] in better shape than European peers”.

Shell is the second most valuable company on the UK’s flagship index, with a market cap of £158.5bn. BP ranks eighth, with a market cap of nearly £62bn. Their large weightings mean that movements in their share prices have a greater impact on driving the FTSE 100 higher.

Oil firms turning tide on tough first-quarter

Kathleen Brooks, research director at XTB, noted stock market gains were “driven by the energy sector” in the beginning of the week.

The FTSE 100 notched another 8,902.34 on Monday on the back of oil company performance.

Shell and BP had a bumpy first-quarter after crude oil prices weakened amid geopolitical uncertainty. 

Adjusted earnings dropped to $5.58bn (£4.2bn) at Shell, down from $7.73bn in the same period in 2024. Meanwhile, weakened oil prices led to BP slashing its buyback to $750m, compared to $1.75bn in the previous quarter.

This followed the cost of a barrel of Brent crude sinking below $70 in the fallout of Trump’s levies.

Shell was reported to be weighing a takeover bid for BP earlier this year, after the latter’s share price plummeted over 30 per cent in 12 months.

BP has suffered a huge rebellion from its shareholders at its annual general meeting in April, as shareholders lashed out at its environmental retreat.