Oil Price Surge Sends Chevron and Exxon Mobil Stocks Soaring

Chevron and Exxon Mobil stocks rose about 3% each on Monday morning after US military strikes against Iran led to an increase in crude oil prices. WTI crude oil is currently at $86.06 per barrel, up 3% over the past 24 hours. The Energy Select Sector SPDR ETF (XLE) is also up 2% to $64.18.

The jump in oil prices can be attributed to geopolitical tensions between the US and Iran, with traders pricing supply optionality across the crude curve as headline sentiment shifts. Both Chevron and Exxon Mobil have significant operations that pass through the Strait of Hormuz, making them vulnerable to disruptions in tanker transit.

However, analysts note that a higher oil price does not necessarily translate to improved earnings for these companies. Their businesses span multiple segments, including upstream production and downstream refining, which respond differently to changes in crude prices.