BP and Shell Fall as Crude Retreats on Iran Diplomacy

Energy majors lagged Europe's rally on Monday as oil prices dropped. BP fell 4.4% and Shell lost 3.1% after Brent crude slid about 8% on hopes for a U.S.-Iran deal, while European gas futures fell almost 9%.

The pullback follows a strong earnings run for the sector, including BP's nearly fourfold jump in third-quarter profit on a refining windfall. Chevron and Exxon also beat estimates last week.

Brent rebounded modestly on Tuesday after limited U.S. strikes near the Strait of Hormuz. Energy shares are likely to keep trading on headlines from the talks.