Energy Stocks Tied to Oil Price Surge Amid US-Iran Conflict

Oil prices are surging due to tensions between the US and Iran, affecting global energy markets. This has put oil and gas stocks in focus, with some companies benefiting from higher selling prices while others face increased costs or policy risks.

Serica Energy is a UK-based oil and gas producer operating in the North Sea. With its production directly exposed to rising oil and gas prices linked to the US-Iran conflict, Serica has significant upside potential. However, the company also carries real risks, including UK windfall taxes, dependence on mature infrastructure, and an uncovered dividend.

Harbour Energy is another large independent producer with a wide global footprint. Its production guidance for 2026 is 480 to 500 kboepd, with roughly 40% linked to Brent and 40% to European gas. Despite being inexpensive on several measures, Harbour Energy remains loss-making with an uncovered dividend and higher funding risk due to external borrowing.

Transocean is a Switzerland-based offshore drilling contractor that supplies rigs and equipment to oil and gas companies. With a US$7 billion contract backlog and recent profit growth, Transocean offers potential earnings recovery opportunities. However, the company carries significant debt, past shareholder dilution, and analyst disagreement on earnings.