LONDON, March 25, 2026, 11:07 GMT
BP shares edged higher in London on Wednesday, but the move was restrained after ceasefire talk knocked oil off its recent highs. The stock traded at 560.12 pence by 1105 GMT, up about 0.5% from Tuesday’s 557.5 pence close and still below its 52-week high of 583.6 pence. 1
The move matters because BP has been trading as a liquid oil proxy more than a stock-specific story. Brent crude fell about 4% to $100.32 a barrel by 0708 GMT after reports Washington had sent Iran a 15-point proposal aimed at ending the war, while Europe’s energy shares were only marginally higher even as the STOXX 600 rose 1.4%. 2
The reversals have been abrupt. UK energy stocks jumped 3.2% on Tuesday as oil climbed back above $100 after Iran denied President Donald Trump’s claim of “productive talks” with Tehran, and AJ Bell’s Dan Coatsworth said the country’s “outsized exposure” to the sector had again helped lift the FTSE 100. A day earlier, BP and Shell fell 2.2% and 4.2%, respectively, after crude slid on signs Washington might pause escalation. 3
Oil traders are not calling an all-clear. Hiroyuki Kikukawa of Nissan Securities Investment said “expectations of a ceasefire have risen slightly,” but warned the outlook for negotiations remained uncertain. Swissquote analyst Ipek Ozkardeskaya said crude could still push back above $100 a barrel if Iran does not cooperate in coming days. 2
BP’s own story is still in play. The company halted its share buyback in February — a buyback is when a company repurchases its own shares — to cut debt, and last week sold its Gelsenkirchen refinery to Klesch, raising its structural cost-cut target to $6.5 billion-$7.5 billion by 2027. Meg O’Neill is due to take over as chief executive in April. 4
Historical price data show how fast the stock has been moving. BP closed at 538.6 pence on Monday and 557.5 pence on Tuesday, after touching 583.6 pence last week. 5
Among peers, Shell remains the clearest read-through. Chief Executive Wael Sawan said on Tuesday Europe could face energy shortages as soon as next month if Middle East disruptions persist, underlining why traders still use BP and Shell as quick bets on supply risk. 6
But the risk cuts both ways. A durable ceasefire and a fuller reopening of the Strait of Hormuz, which normally carries about a fifth of the world’s gas and crude supply, would likely cool oil and strip away some of the extra support energy shares have drawn from supply fears. If talks fail, analysts say the volatility could come back fast. 2
