One of the world’s largest — and oldest — oil majors saw its share price hit an all time high on Monday amid concerns over the escalating war in the Middle East.London-based Shell PLC saw its shares climb about 1.5% to 2,767.50 pence (about CAD$46) on the London Stock Exchange on Monday after Israel was reportedly ready to commence a ground invasion of the Gaza Strip.Likewise, the company’s New York Stock Exchange-listed subsidiary hit a 52-week high of USD$68.18 before pulling back to close at $68.14.On any exchange, Shell’s shares are up almost 10% since the start of the war on October 7, roughly tracking the increase in oil prices over the same period. Overall, the company’s share price has gained more than 31% from this time last year when it announced plans to walk back its renewable energy investments amid the war in Ukraine..Analysts said oil markets are pricing in a ‘war premium’ should oil prices spike if the conflict were to spread to include OPEC member Iran and other regional oil producers such as Saudi Arabia that supply almost a third of the world’s crude.According to Seema Shah, the chief global strategist at Principal Asset Management: “The critical macro concern lies with the oil market reaction. Brent crude prices have not risen materially, but a significant escalation in tensions would likely apply further upward pressure.”Likewise, Ricardo Evangelista, a senior analyst at Nassau-based ActivTrades, said traders are anticipating a potential disruption in global oil supplies.“The big question mark surrounds a possible spillover of the confrontation, which could affect major oil producers in the region and how such a scenario could affect the global supply of crude. Against this background, uncertainty will remain high, in a dynamic likely to continue to support the price of the barrel.”Last week the International Energy Agency (IEA) said although the Israel-Hamas conflict has not yet had a direct impact on physical supply, energy markets “remain on tenterhooks” as the crisis unfolds.In June, the company ditched plans to reduce its global oil production by around 1% to 2% per year each year until it hits its 2030 emissions reductions targets because it said it already did so after it sold a Texas oil field earlier this year.It now says it will spend about $40 billion to keep production flat to 2035 while maintaining an overall net-zero target by 2050. It joins Fellow Seven Sisters BP and France’s Total Energies that have walked back emissions reductions plans.In 2017 it sold virtually all of its Canadian oil sands assets to Canadian Natural Resources and in 2021 sold most of its oil and gas shale production in the Duvernay play to Crescent Point.