Exxon Stock Surges as Iran Tensions Boost Oil Prices

Exxon Mobil XOM, the U.S. energy giant, reported massive second-quarter earnings of $14.5 billion, sending its stock upwards by 1.2% on Friday morning. The company's oil prices climbed as Brent crude jumped 1.6% to $88.50 a barrel following news that the U.S. would maintain its naval blockade against Iran indefinitely.

The market math is simple: more tension around the Strait of Hormuz means more risk for global oil supply, and potentially more pricing power for Exxon. However, investors are paying a premium for Exxon's stock, with it trading at $160.59 on August 14 while GF Value stood at just $124.79.

The company delivered strong cash flow numbers, including $23.6 billion of operating cash flow and a massive $17.2 billion of free cash flow. Exxon then fired $9.4 billion straight back to shareholders through $4.3 billion of dividends and $5.1 billion of buybacks.