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The BP (LSE: BP) share price has been one of the standout performers on the FTSE 100 over the past year. If you’d bought 10,000 shares at the 52-week low of 399.35p (or a £39,935 investment), you’d be sitting on a tidy profit.
As I write on Monday (3 August), that same investment would be worth £54,420 today. That’s a gain of £14,485, or 36.3%, over the last 12 months. Of course, smaller investments would have yielded pleasing results too.
Should you buy Bp P.l.c. shares today?
Before you decide, please take a moment to review this report first. Despite ongoing uncertainties from US tariffs to global conflicts, Mark Rogers and his team believe many UK shares still trade at substantial discounts, offering savvy investors plenty of potential opportunities to learn about.
That’s why this could be an ideal time to secure this valuable research – Mark’s analysts have scoured the markets to reveal 5 of his favourite long-term ‘Buys’. Please, don’t make any big decisions before seeing them.
But what has actually driven such a sharp move — and is there more to come?
Breaking down the numbers
The 52-week low of 399.35p was hit on 4 August 2025, when uncertainty about the global oil market and broader macro concerns were weighing on energy stocks.
Here’s how that £39,935 investment has performed since:
4 August 20253 August 2026Share price399.35p552.5pShares held10,00010,000Portfolio value£39,935£54,420Return–+39.1%
To put that in context, the same £39,935 in a cash savings account at a 4% annual interest rate over the same period would be worth approximately £41,532.
That difference of £12,988 shows the power of picking the right stock, at the right time for the right price. Investors who bought at the low are sitting pretty.
What’s the story?
The dominant force behind the company’s share price gain has been a tragic one, the US-Iran conflict. This has disrupted oil supply chains and driven crude prices sharply higher.
As an integrated energy giant with global operations, the business benefits from higher oil prices that flow through to revenues and margins.
With a market cap of £85.3bn and a dividend yield of 4.6%, the company is an interesting option for both income and growth. It’s also among the better-performing Footsie stocks in a year that has seen the index reach a new all-time high.
The company also recently announced the sale of its North Sea operations. While relatively minor in the context of BP’s global production, it could provide a meaningful windfall and shows a strategic focus on higher-returning assets elsewhere.
As we focus our portfolio and direct capital to our highest-value opportunities, we believe our North Sea business will be better positioned as part of another company.
CEO Meg O’Neill
What are the risks?
The forward price-to-earnings (P/E) ratio of around 8 times seems like good value at first glance. However, the volatile situation in the Middle East means I’m not confident in betting on its projected earnings.
After all, crude oil prices have moved swiftly — often in a matter of days — as ceasefire talks ebb and flow. Investors are clearly wary of an unpredictable situation that makes valuing the company accurately rather difficult.
My verdict
In my view, the recent gains reflect the potential impact of an ongoing Middle East conflict on global oil supplies rather than long-term fundamentals. The 4.5% dividend yield is tempting, but I won’t be buying BP shares in the near future.
The global geopolitical situation is too difficult to get a read on an underlying valuation, and I think there are better options out there for that same income level.
What income stock do we like better than Bp P.l.c. right now?
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Ken Hall does not hold any positions in the companies mentioned.
