Geopolitical Tensions in Middle East Drive Oil Prices Higher, Benefiting Shell (SHEL)

Escalating conflict between Israel and Iran has sent shockwaves through global markets, with oil prices surging amid fears of supply disruptions in the Strait of Hormuz. The strategic waterway accounts for 20% of the world''s oil supply, and any escalation could push crude prices toward $100 per barrel.

Shell (SHEL) stands to gain from the turmoil. The energy giant reported robust Q1 2025 earnings of $5.6 billion, a 52% quarterly increase, with EPS reaching $1.84. Despite trading NEAR 52-week highs, Shell''s valuation remains attractive if oil prices stay elevated.

Market volatility underscores the fragility of energy supply chains. Analysts warn that further military action could trigger a full-scale regional war, with lasting implications for commodity markets and inflation.