Shares in big oil companies have soared to all-time highs since the war in Iran began and sparked historic price rises on global oil and gas markets.
The combined market value of the six stock market-listed western “super majors” has soared by more than $130bn in the two weeks since the first US-Israeli attacks on Iran.
The energy supply shock caused by the conflict has resulted in record stock market valuations for London-listed Shell, Europe’s largest oil company, as well as US oil companies ExxonMobil and Chevron.
The market shock is expected to deliver multibillion-dollar windfalls for the industry, even as sites in the Middle East are hit by the conflict.
US oil companies can expect a $63.4bn boost, according to consultancy Rystad Energy. Separately, analysts at Goldman Sachs have predicted a combined £5bn windfall for BP and Shell.
Shell was valued at an all-time high of £190bn on the London Stock Exchange on Friday, up by about 12% since 27 February.
The sharp rise in prices has been enough to offset the impact of a production shutdown at Qatar’s main liquified natural gas facility, which forced Shell to declare force majeure on deliveries from the site to its customers.
Shares in Exxon and Chevron climbed by more than 5% and 7%, respectively, in the fortnight since the Iran war began. Exxon’s market value climbed to $630bn while Chevron’s valuation climbed to almost $390bn.
British oil company BP, French oil company TotalEnergies and ENI, which is partly owned by the Italian government, also recorded substantial share price rises over the last fortnight but have so far remained below their previous all-time highs.
BP’s shares climbed by more than 12% since the end of February to reach a market valuation of £82bn, while Total has recorded gains of about 10% to €176bn (£151bn). ENI has climbed by about 13% to €67bn
One of the biggest financial beneficiaries of the global energy market surge is Norway’s state-owned oil company, Equinor, which lists a third of shares. It is Europe’s largest gas supplier and has no production assets in the Middle East. Its Oslo-listed shares have climbed by more than 20% in a fortnight, although the market value of $90bn remains slightly lower than the all-time highs reached during the gas crisis after Russia invaded Ukraine.
The international oil benchmark price climbed to highs of $117 a barrel early in the week and was just above $103 a barrel at the end of UK trading on Friday.
Global green group 350.org called on governments to introduce windfall taxes on the world’s biggest oil companies because “working people shouldn’t be paying the price while oil majors treat the war in the Middle East like a winning lottery ticket”.
Clémence Dubois, the group’s global campaigns manager, said: “The right response is a strong windfall tax, which should be redirected to support households and accelerate the transition to clean energy that reduces our dependence on the very fuels driving climate disruption and global instability.”
Dubois warned governments against opting for fuel duty cuts. She said: “Cutting fossil fuel taxes during a crisis is not a relief for families, it’s a subsidy for companies that are already enjoying windfall profits.”
