Oil Price Surge Sends Energy Stocks Soaring Amid Strait of Hormuz Tensions

The recent surge in oil prices has sent shockwaves through the energy sector, causing several stocks to soar. Despite Brent crude failing to break below $80 and rebounding to the mid-$80s, traders have kept a geopolitical risk premium priced into oil due to ongoing Strait of Hormuz negotiations.

According to Kpler data from the previous two days, shipping traffic through the Strait of Hormuz plummeted about 33%, with only a handful of vessels crossing daily. This has led to increased supply-shock risk, causing investors to re-price their expectations for oil prices.

The stocks of several energy companies have been impacted by this price movement, including Calumet (CLMT), which is up 124% since the beginning of the year and trading close to its 52-week high of $44.19 from July 2026. Investors who bought $1,000 worth of Calumet's shares five years ago would now be looking at an investment worth $7,081.

The market's reaction is not without precedent, as the price of Brent crude rose sharply in the past when threats were made against Iranian oil wells and export hubs. This increase came after a deal concerning the Strait of Hormuz was not reached, pushing oil prices to historic levels.