Analysts bullish on European oil, gas on 'game-changing situation' in Middle East

Galp Energia SGPS SA

02/03/2026 07:23

** European oil majors like Shell SHEL.L, Galp GALP.LS, Eni ENI.MI and TotalEnergies TTEF.PA should benefit from conflict in the Middle East and rising commodity prices, analysts say

** Crude oil, fuel and LNG shipments via the Strait of Hormuz have been heavily impacted after the U.S. and Israel attacked Iran and killed its Supreme Leader Ali Khamenei on the weekend

** J.P. Morgan calls it a "game-changing situation" -- ups Eni and TotalEnergies to "overweight" and reiterates "overweight" on Shell and Galp

** The four European oil majors can benefit from their low costs, cheap valuation and solid reserves amid rising oil and gas prices, JPM says, adding about 20-30% of global oil and LNG transit through Hormuz

** Citigroup and Berenberg also up their PTs for energy companies throughout

** "Regardless of the outcomes, we think investors can take confidence that energy equities still have strong valuation support at their core", Citigroup says

** "Regime change in oil-producing countries has on average driven oil prices 30% higher for a minimum 3 months," JPM says

** Crude futures surged more than 8% on Monday to multi-month highs

(Reporting by Alessandro Parodi)

((Alessandro.Parodi@thomsonreuters.com;))