Thursday 30 July 2026 9:02 am
| Updated:
Thursday 30 July 2026 9:17 am
Shell gave a market update on Thursday.
Shell has said it will continue its bumper share buyback programme after revealing the Iran war’s effect on oil prices and trading volumes helped it book near-record profit.The Anglo-Dutch giant’s net profit spiked to $9.8bn between April and July, more than double the same period last year and beating analyst estimates.Shares were up two per cent on the news to 3,376.00p in early trading.The petrochemicals giant announced it would continue to return much of those profits to shareholders and continue its $3bn quarterly share buyback programme.The profit haul follows Brent crude – the international benchmark for oil prices – hitting highs of $126 at the end of April after disruption to market flows through the Strait of Hormuz.The narrow waterway, which connects the Persian gulf and Gulf of Oman, was effectively closed by Iran after war broke out at the end of February.Wael Sawan, the top boss of Shell, said there was “severe disruption in global energy markets” following the war. Shell’s gas production takes a hitThe blue-chip energy firm faced some negative disruption from the conflict, however, as it reported a 30 per cent drop in production from its integrated gas division, compared with the same quarter last year.Shell’s Pearl gas-to-liquids site in Qatar stopped production in March after it was hit during strikes. Liquified natural gas facilities in the country that are partly owned by Shell were also affected.The Pearl site has not been able to produce gas since the missile attack.Tensions in the oil market have returned to levels not seen since the beginning of June over the last week, after both the US and Iran warned that hopes of a return to peace negotiations were premature.The price of Brent crude briefly broke above $100 and has since traded above the $90 mark following the break down of peace talks.“Volatility is the new normal,” Sawan told CNBC on Thursday.“What we have been trying to build is a company that is able to thrive through volatility… the macro is such that the commodity prices are high and that provides a very strong tailwind for our results.”
