London, March 26, 2026, 11:54 GMT
BP shares climbed roughly 1.2% to near 574 pence in London on Thursday, outpacing the FTSE 100, which slipped, with Brent crude shooting above $105 a barrel after prospects for a swift resolution to the Iran conflict dimmed.
This shift stands out—energy remains one of the last refuges for investors spooked by the latest bout of inflation. By 1013 GMT, the FTSE 100 had fallen 1.1%, yet the energy index was up 0.6%. That’s a clear sign: when crude jumps, money is flowing back into oil producers.
Every swing in oil prices hits BP harder these days, after the company put a stop to share buybacks back in February, aiming instead to pay down debt and direct more cash toward oil and gas operations. BP wrapped up the quarter carrying $22 billion in net debt, setting its sights on trimming that figure to somewhere between $14 billion and $18 billion by 2027. Still, finance chief Kate Thomson cautioned that simply reaching the target wouldn’t “automatically trigger” a restart of buybacks. Reuters
“Ongoing military escalation” and increased restrictions on tanker traffic continue to pressure global energy markets, MUFG’s Soojin Kim said. Brent rose $3.51 to $105.73 a barrel as of 0908 GMT, bouncing back after a drop of over 2% on Wednesday. Reuters
Dan Coatsworth at AJ Bell pointed out that the FTSE 100 managed to “pull ahead of the market pack” earlier this week, thanks to Britain’s “outsized exposure” to energy. That play is back in action, despite most other sectors in Europe feeling the squeeze from rising yields and renewed speculation over rate hikes. Reuters
There’s fresh pressure here. Follow This, together with European investors handling $1 trillion, set an April 1 deadline for BP to add a shareholder resolution to the April 23 annual general meeting agenda—otherwise, they threatened legal action. The resolution pushes BP to spell out how it would manage dropping demand for oil and gas in the long run. BP, citing legal advice, rejected the proposal, saying it wasn’t valid.
“A leaner board is a more agile board,” Chairman Albert Manifold remarked earlier this month, as BP shifts back in the direction of oil and gas. Meg O’Neill is lined up to become chief executive in April. Reuters
Shell finds itself in a similar spot. Follow This has submitted a comparable resolution for Shell’s meeting set for May 19. Notably, both Shell and Exxon held steady on their buyback strategies after BP hit pause on its $750 million quarterly program this February.
Still, any cooling in crude could quickly unwind the rally. On March 23, BP slid 2.2% and Shell tumbled 4.2% after Washington briefly signaled easing tensions, sending oil prices lower. Barclays isn’t budging from its base case: traffic through the Strait of Hormuz returns to normal by early April, which lines up with Brent averaging $85 a barrel in 2026. A drawn-out disruption, though, and oil could be marked up to $100-$110.
Craig Cameron, a portfolio manager at Templeton Global Equity Group, said the bigger challenge for investors is figuring out how long the conflict could last and what could bring about “an off-ramp or a resolution.” BP, as a result, finds its shares stuck between higher oil prices for now and the ongoing push to lower debt and make its reset count. Reuters
