New York, March 4, 2026, 03:13 ET — The market has closed.
- Shell’s U.S. shares (SHEL) ended Tuesday off 2.2%, settling at $82.33.
- Brent pushed higher early Wednesday, with the U.S.-Israel standoff against Iran tightening up supply routes.
- Shell announced new share buybacks, while also losing a court battle over an ongoing LNG dispute.
Shell’s U.S.-listed stock finished Tuesday down 2.2% at $82.33. That move came as crude prices jumped, driven by escalating tensions involving the United States, Israel, and Iran. Shares saw a session range from $81.55 up to $83.36.
Oil prices pushed higher again early Wednesday. Brent climbed 3.3% to $84.07 a barrel, while U.S. WTI advanced 3% at $76.80. After both contracts jumped more than 5% in the previous two sessions, traders remained focused on the US-Iran conflict. “The primary near-term driver for oil prices remains the US-Iran conflict,” said OANDA’s Kelvin Wong. 1
Stocks didn’t catch a break on Tuesday. The Dow shed 0.8%, S&P 500 gave up 0.9%, and the Nasdaq dropped 1%. Rising energy prices kept inflation nerves raw, making rate cuts look less likely. “Oil’s rallied because of the escalation… This has pushed yields higher and stocks lower,” said John Velis, Americas macro strategist at BNY. 2
Energy names caught a bid early after the conflict broke out—Reuters flagged sharp gains for big oil producers like Shell and Exxon as crude spiked Monday. By Tuesday, though, the mood turned: the selloff underscored just how fast sentiment can swing when markets weigh weaker growth against pricier fuel. 3
Shell continued its shareholder returns, disclosing the purchase of 2,060,266 shares for cancellation on March 3 across both London and Amsterdam venues. The move comes under its buyback programme announced Feb. 5. Morgan Stanley & Co. International is set to handle trading decisions on its own through May 1, according to the company. 4
Shell absorbed another setback in the gas sector as a New York judge refused its attempt to overturn an arbitration decision favoring LNG player Venture Global. The case centers on cargoes that customers allege went to the spot market rather than being honored under long-term contracts. UBS analyst Manav Gupta noted the outcome clears a hurdle for Venture Global, calling it “arbitration overhang” on the stock. 5
The real swing factor for Shell is still what happens in the Middle East. According to Jefferies, roughly 20% of Shell’s oil and gas production comes from the region—matching Exxon’s footprint, but trailing TotalEnergies, Reuters said. Reuters also pointed out that Shell holds a partnership with QatarEnergy, which recently suspended LNG output following drone attacks. That puts operational risk right up against the potential for higher prices. 6
Bulls have a caveat: if the Strait of Hormuz reopens or tensions ease, oil and gas could see a rapid pullback, deflating the energy rally. Yet if the shutdown drags on, chances increase for actual supply disruptions and a sharper dent to risk appetite.
U.S. markets remain closed for several hours, so attention shifts to oil trading activity across Asia and Europe. Traders are eyeing developments around tanker movements and insurance coverage, parsing headlines for clues. The key question: Will energy stocks keep behaving as a hedge, or will they begin to move in line with broader market trends?
Official U.S. oil inventory numbers hit at 10:30 a.m. ET Wednesday. That report could heighten arguments about whether the market’s dealing with a supply shock, a demand slump, or some combination.
