Shell PLC (LSE:SHEL, NYSE:SHEL) shares hit a record high today on fears that an Israeli invasion of Gaza City could send crude prices soaring.
Shares in the Anglo-Dutch giant hit 2,763p, valuing it at around £182 billion, or twice as much as its UK rival BP PLC (LSE:BP.), with its shares having risen by a quarter since June when new chief executive Wael Sawan dropped plans to cut production.
Oil prices were also on the rise as fears of the impact of an Israeli invasion of Gaza sent Brent crude higher again to around US$91.
Iran warned at the weekend it would intervene if Israel goes ahead in Gaza, though it was unclear what that would entail.
Oil was trading at around $85 a barrel before the Hamas attack.
Traders at Saxo Bank said: “Of more concern is the natural gas price since that has a clearer impact on the cost of heating homes and on food costs.”
Speaking to the Standard, Chris Weston, head of research at Pepperstone, said: “The focus has been rerouting that gas from the Leviathan gas fields in the north of Israel – if the market feels this gas field could be impacted then [this] could see a spike in EU natural gas."
Ipek Ozkardeskaya at Swissquote Bank said further rises in oil prices “threaten to disrupt the central banks’ war against inflation, and weigh on an already-bad-looking global economy”.
West Texas and Brent crude saw their biggest one-day jump since April on Friday.