Oil Is Surging Again After Tanker Attacks — 5 Energy Stocks to Watch

Oil prices are surging again as the conflict in the Middle East threatens one of the world’s most important energy routes. Fresh strikes on ships near the Strait of Hormuz have rattled markets and sparked fears of a major supply shock.

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Crude has reacted quickly. Brent oil has pushed past $100 a barrel, while West Texas Intermediate has also jumped sharply after gaining more than 7% in recent trading. The rally comes as tanker traffic through the Strait of Hormuz slows following reports of new attacks on commercial vessels.

The stakes are high. The Strait of Hormuz is the most critical oil shipping route in the world, carrying roughly 20% of global crude supply. Any disruption there can tighten supply almost instantly and send prices sharply higher. With markets now pricing in the risk of a prolonged disruption, oil traders are once again bracing for a potential energy shock.

Emergency Oil Release Fails to Ease Supply Fears

Governments have tried to calm those concerns. The International Energy Agency said its 32 member countries will release 400 million barrels from emergency reserves, including 172 million barrels from the United States.

However, analysts warned that this is a temporary measure. The reserves cannot fully replace the large volume of oil that normally moves through the Strait of Hormuz each day if the disruption continues.

5 Energy Stocks Investors Are Watching as Oil Surges

With oil prices suddenly back above $100, attention is shifting to the companies that produce it. When crude spikes, large oil producers and drilling companies often move higher as the value of their output rises.

• Exxon Mobil XOM +2.33% ▲ : Exxon Mobil, the largest publicly traded U.S. oil producer, is often one of the first stocks investors watch when crude prices jump. The company operates across the full energy chain, from oil production to refining and chemicals, which allows it to capture more profit when energy prices rise. On Wall Street, analysts have a Strong Buy consensus rating on Xom, with analysts projecting about 49% upside

• Chevron CVX +2.95% ▲ : A major global producer with significant assets in the U.S. and around the world. Chevron’s stock is highly sensitive to crude price movements, often serving as a primary vehicle for investors seeking direct exposure to oil rallies.

• Occidental Petroleum OXY +4.63% ▲ : Known for its massive footprint in the Permian Basin, one of the most productive shale regions in the U.S. Occidental is well-positioned to see immediate cash flow benefits when oil prices are elevated.

• SLB SLB +0.12% ▲ : Formerly Schlumberger, this is a leading oilfield services provider. Instead of producing oil itself, SLB provides the technology and expertise others need to extract it. When oil prices are high, producers often ramp up exploration and drilling, which drives demand for SLB’s specialized services.

• EOG Resources EOG +3.61% ▲ : A top-tier U.S. shale operator recognized for its operational efficiency. EOG’s profitability is tightly correlated with market prices for crude, making it a key stock to watch during periods of high oil volatility.

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