US-Iran Tensions Send Oil Prices Swinging, Affecting Energy Stocks

The recent escalation of tensions between the US and Iran has sent oil prices swinging, causing some stocks tied to energy pricing and global trade to experience sharp moves. Three such stocks are Occidental Petroleum (OXY), United States Oil Fund (USO), and ExxonMobil Holdings (XOM).

Occidental Petroleum is a large US-based oil and gas producer that operates across the US and select international regions, including the Middle East. With revenue tied to U.S. operations of roughly $17.7b and about $4.2b from international markets, Occidental generates about $20.2b from Oil and Gas and $1.5b from Midstream and Marketing.

The company has been working on efficiency and deleveraging, while also building a carbon capture business that could add new revenue streams alongside its core oil and gas production. However, the stock carries a high P/E and depends heavily on oil prices, so earnings can be sensitive if the conflict eases or demand weakens.

ExxonMobil Holdings is another large integrated energy company with operations across the US, Canada, and other international markets. It generates most of its revenue from Energy Products at about $295.8b, followed by Upstream at roughly $101.8b, Chemical Products at about $32.6b, and Specialty Products at around $20.4b.

The company's scale and integrated model may help it keep operations running and support supply when routes are constrained. However, earnings growth has been modest, margins have come under pressure, and returns rely on heavy external borrowing.