FTSE 100 oil giants have regained favour with analysts as surging oil prices result from escalating Middle Eastern tensions.
Shares in BP and Shell saw an approximate three per cent increase over the past week, with further rises following President Donald Trump's comments on the situation in Israel and Iran, as reported by .
Russ Mould, investment director at AJ Bell, observed that "concerns the US might join Israel's military effort against Iran" were fuelling oil market shifts, consequently sparking advances in Shell and BP shares.
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In reaction to Trump signalling America's patience was "wearing thin," oil prices momentarily peaked above $77 per barrel but later moderated slightly.
According to Neil Wilson, 海角视频 investor strategist at Saxo, it is the oil majors that are "keeping the [FTSE 100] in better shape than European peers."
With a valuation of £158.5 billion, Shell stands as the second most valuable company on the 海角视频's premier stock index, followed by BP in eighth place at nearly £62 billion market cap; their significant size means their share price changes noticeably influence the FTSE 100's direction.
Oil firms turning tide on tough first-quarter
At the start of the week, Kathleen Brooks, research director at XTB, remarked that stock market uplifts were "driven by the energy sector."
Following sturdy performances by oil firms, the FTSE 100 reached another peak of 8,902.34 points on Monday.
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After a volatile first quarter, Shell and BP stabilised as crude oil prices fluctuated due to geopolitical uncertainties.
Adjusted earnings at Shell fell to $5.58bn (£4.2bn), a decrease from $7.73bn in the same period in 2024, while BP cut its buyback to $750m due to weakened oil prices, compared to $1.75bn in the previous quarter.
This came after the price of a barrel of Brent crude dropped below $70 following Trump's levies.
Earlier this year, it was reported that Shell was considering a takeover bid for BP, following a more than 30 per cent drop in the latter's share price over 12 months.
BP faced significant backlash from its shareholders at its annual general meeting in April, with shareholders criticising its environmental retreat.