BP BP Plc

By Christian Moess Laursen

Shares in oil-and-gas giants Shell and BP rise, outperforming the FTSE 100 index, on the back of increased oil prices amid mounting Middle East tensions.

At 0955 GMT, shares in Shell are up 16.00 pence, or 0.6%, at 2,609.00 pence, while BP shares are up 5.25 pence, or 1.1%, at 477.20 pence. In the last 12 months, shares in Shell have increased 14%, while BP's have risen 2.4%.

The London-listed energy majors have gained from oil prices climbing on concerns over further military confrontations in the Middle East and disruptions to global supply following explosions at a ceremony in Iran, killing nearly 100 people. The commemoration was held to mark the four-year death anniversary of a top Iranian general who died in a U.S. drone strike in Iraq in January 2020.

The fatal blasts add to tensions in the region, with shipping being disrupted in the Red Sea due to several attacks on vessels by the Yemeni Houthi rebels, while the Israel-Gaza war continues.

"The region remains a tinder box due to the Israel-Gaza war, and disruption to shipping routes through the Red Sea is also a key factor behind the surge in crude," AJ Bell investment director Russ Mould said in a market comment.

The shutdown of Libya's largest oil field due to local protest is likewise fuelling the concerns over tight supply.

Brent is up 1.06% at $79.06, while WTI is 1.3% higher at $73.64.

Write to Christian Moess Laursen at christian.moess@wsj.com

(END) Dow Jones Newswires

January 04, 2024 05:22 ET (10:22 GMT)

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