ExxonMobil, Chevron, ConocoPhillips Rise as Iran Conflict Pushes Crude Higher

TLDR

• Oil prices jumped sharply after renewed U.S. strikes on Iran raised fears over crude supply disruptions
• Brent crude briefly hit $95 a barrel; WTI futures surged nearly 4% to $87.27
• ExxonMobil, Chevron, and ConocoPhillips all rose in premarket trading
• Secretary of State Marco Rubio said Iran was “not serious” about peace talks
• Analysts say shipping volumes, insurance costs, and tanker availability are all at risk

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Oil prices climbed on Wednesday after the United States launched fresh strikes on Iran, raising concerns about disruptions to crude shipments through the Strait of Hormuz.

Brent crude briefly touched $95 a barrel before pulling back to $94.40, a gain of 3.7%. West Texas Intermediate futures rose nearly 4% to $87.27. WTI is now up more than 10% on the week and over 51% year-to-date.

Secretary of State Marco Rubio, speaking in Manila, said Iran was “not serious about talks,” while adding that the U.S. remained open to diplomacy.

The Strait of Hormuz is one of the world’s most important oil shipping routes. Any disruption there can tighten global supply quickly.

“The market is rebuilding part of the geopolitical premium,” said Daniela Hathorn, senior market analyst at Capital.com. She added that the concern is not just whether the strait is open or closed, but whether shipping volumes, insurance costs, and tanker availability stay impaired.

Energy Stocks Move Higher

ExxonMobil and Chevron both rose around 1.1% in premarket trading. ConocoPhillips gained 1.2%.

Exxon Mobil Corporation, XOM

ExxonMobil, valued at roughly $628 billion, carries an integrated business model that spans upstream production, refining, and chemicals. Analysts see around 10.7% upside from current prices, with a dividend yield of 2.8%.

Chevron offers a 3.8% dividend yield alongside analyst consensus upside of around 13%. Its combination of income and growth makes it a popular pick when oil prices rise.

ConocoPhillips trades at a lower valuation than its peers, at roughly 19.9 times earnings. Analysts see the most upside of the three, around 20.9%. As a pure exploration and production company, its earnings are closely tied to crude prices.

Risks Still on the Table

All three companies face the same key risk: demand destruction. If WTI climbs toward $100 a barrel or higher, it can slow economic activity and push central banks to react.

WTI’s 52-week high sits at $117.63. Analysts suggest that level is where the market narrative could shift from positive to negative.

Refining stocks Valero and Marathon Petroleum have both surged more than 92% year-to-date. However, analysts now see little room for further gains, suggesting the refining trade may already be priced in.

For now, the focus remains on the Middle East. The situation between the U.S. and Iran continues to drive energy markets, with no resolution in sight as of Wednesday morning.