Energy majors BP and Shell are drawing renewed attention from value investors as crude oil prices soften amid easing geopolitical tensions in the Middle East.
Optimism surrounding a potential US-Iran peace agreement has weighed on oil prices, reducing the risk premium that had supported energy stocks in recent months.
The Strait of Hormuz, one of the world’s most critical oil shipping chokepoints, has seen shipping activity resume, alleviating earlier supply disruption fears across global markets.
Restored passage through Hormuz has contributed to a broader easing of supply concerns that had kept crude prices elevated and energy stocks well supported through much of 2026.
BP and Shell, both listed on the FTSE 100, had benefited from the period of heightened tension, with investors pricing in the risk of prolonged disruption to Middle Eastern oil flows.
With that risk now fading, both companies face a more challenging pricing environment as the underlying commodity that drives their revenues moves lower.
Value investors are watching closely to determine whether the two energy giants can maintain earnings resilience in a softening oil market, particularly given their significant upstream exposure.
BP has been navigating its own internal pressures, including ongoing strategic reviews and a push to balance its legacy fossil fuel business with longer-term energy transition commitments.
Shell similarly faces investor scrutiny over capital allocation decisions, dividend sustainability, and how it positions itself as crude markets shift away from geopolitical risk premiums.
The return of Hormuz shipping could prove a double-edged development, stabilising broader energy supply chains while simultaneously removing a key support for oil prices that benefited both companies.
Analysts and traders will be monitoring how BP and Shell respond operationally and strategically if crude prices continue to drift lower through the remainder of the year.
Whether either stock can hold firm in this new environment may ultimately depend on how durable the US-Iran optimism proves and whether Hormuz shipping stability is sustained.
