Oil Price Surge Sparks Focus on Key Stocks Amid Geopolitical Risks

Oil prices have surged to near $80s per barrel as tensions between Iran and the Strait of Hormuz escalate, sparking concerns among investors about geopolitical risks in global markets.

CVR Energy (CVI), a US refiner, is one of the stocks to watch in this situation. CVR generates around $7.7 billion in revenue from petroleum products, with most coming from the United States. It also produces nitrogen fertilizers and has a growing focus on renewable energy.

Analysts project strong earnings growth for CVR Energy, but the company's significant use of debt financing and RFS/RIN compliance costs means its performance is not solely dependent on crude prices.

Hess Midstream (HESM) is another stock to consider. It owns critical US energy infrastructure, including pipelines and export terminals, and earns fee-based income from providing services. However, the company's heavy dependence on Bakken volumes and single anchor customer means its stability story is not entirely risk-free.

Cheniere Energy (LNG), a leading US LNG exporter, also sits at the center of global gas trade. Its Gulf Coast terminals are outside the Strait of Hormuz chokepoint, and long-term contracts provide toll-road style cash flows. However, high leverage and a premium P/E ratio mean investors may be paying a premium for this position.