Shell hits record as Brent tops $100 amid global tensions

Shell shares climbed to a record 3,530p on the back of a crude rally as Brent topped $100 per barrel and West Texas Intermediate reached $94.6. The gains followed renewed attacks on oil infrastructure in Ukraine, clashes between US and Iranian forces at sea and continued Saudi‑Houthi strikes in the Red Sea, which market participants cited as raising supply risks and lifting energy stocks.

The stock is up nearly 25% from its July low and about 42% from its January trough, placing it among the stronger performers in the FTSE 100. BP traded near 560p, roughly 25% above its July low. US refiners and majors including Chevron, ExxonMobil and Marathon Petroleum also rose as crude benchmarks climbed.

Market sources pointed to a string of events that tightened risk perceptions. Ukrainian strikes on Russian oil infrastructure continued, US and Iranian naval actions included reported sinkings and attacks on vessels, and Iranian authorities announced an exclusion zone and warned of sanctions on ships. Meanwhile Saudi‑Houthi attacks have persisted in the Red Sea region.

Technical indicators showed momentum behind the oil move. WTI broke above the upper boundary of a symmetrical triangle and cleared resistance at $93.23, the July 23 high, while the Average Directional Index rose to about 19.8. Brent moved above $100 per barrel for the first time since July.

Shell’s recent results and capital returns underpinned investor interest. The company reported adjusted earnings of $9.8 billion in the second quarter, adjusted EBITDA of $20.7 billion and free cash flow of $21.4 billion for the referenced period. Management increased buybacks to $3 billion. Market participants said higher crude prices would likely support revenue and cash generation in the third quarter if prices remain elevated.

On technical charts, Shell cleared a key resistance at 3,524p and formed an inverted head‑and‑shoulders pattern. The stock’s Average Directional Index rose to about 34 and it moved above the Ultimate Resistance level on the Murrey Math tool; technical observers cited a near‑term reference around 3,600p for buyers.

Analysts and traders noted that the coexistence of three conflict zones — US‑Iran tensions in the Gulf, Saudi‑Yemen hostilities and Russia‑Ukraine fighting — keeps the potential for further price swings. Analysts tracking the sector said higher oil prices generally boost integrated majors through stronger refining margins and greater upstream cash flow, while also warning that developments in the geopolitical hotspots could trigger sudden reversals.

Market participants will monitor further developments at sea and onshore in Ukraine, alongside incoming economic data and company updates, for signs about how long the current oil‑price rally and the attendant gains in energy stocks may last.