Middle East Tensions Spark Oil Price Surge

Renewed conflict in the Middle East drove oil prices higher on Monday, prompting investors to seek shelter in energy stocks. Oil prices rose sharply after the U.S. and Iran exchanged strikes, sparking a flare-up in hostilities that threatens to prolong the conflict.

The news caused Brent crude to top $90 as traders weighed the risk of further strikes disrupting vital shipping lanes through the Strait of Hormuz. In response, many oil-related stocks rose, with SLB up 4.8%, ExxonMobil up 2.7%, Devon Energy up 2.5%, Chevron up 2.1%, and Occidental Petroleum up 1.8%.

These energy companies are likely to benefit from higher oil prices, which should drive their earnings higher. SLB offers a range of services to the energy industry, including well construction, reservoir management, and equipment maintenance, operating in over 120 countries. ExxonMobil is the largest publicly traded oil major, with leading positions in exploration, production, and refining.