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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a development underscoring rising geopolitical risks in the region, Shell (SHEL) warned that continued disruption in the Strait of Hormuz could lead to a contraction in global LNG supply. According to a report published by the Wall Street Journal, the warning reverses Shell's prior expectations of significant sales growth over 2026.
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Sign InThe warning coincides with notable weakness in global energy prices, with Shell shares closing at $76.89 on June 29, 2026, after touching a low of $76.69 during the session. Recent data also showed a 6.1 million barrel drawdown in U.S. crude oil inventories for the week ended June 24, reflecting the broader uncertainty gripping energy markets.
Investors are closely monitoring developments in the Strait of Hormuz, as any escalation in tensions could become a catalyst for higher LNG prices. Technically, Shell stock is trading between resistance at $77.25 (June 29 high) and support at $76.69. Markets are also watching for any diplomatic efforts to ease the disruption, as well as upcoming U.S. economic data that could influence demand.