Energy Stocks as a Hedge Against Geopolitical Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 21 2026
0mins
Should l Buy EQNR?
Source: NASDAQ.COM
- High Dividend Yield: The Global X MLP ETF, Equinor, and Flex LNG offer an average dividend yield of 7.3%, providing a reliable cash flow for passive income-seeking investors, especially amid rising global economic uncertainties, significantly enhancing their investment appeal.
- Energy Infrastructure Advantage: With the closure of the Strait of Hormuz, energy infrastructure and shipping companies like Equinor and Flex LNG are poised to benefit from increased demand, particularly from Asia, which is likely to drive up prices and enhance these companies' market positions and profitability.
- Long-Term Contract Security: MLPs emphasize their long-term take-or-pay contracts, ensuring a stable income stream regardless of gas pricing or volume, which allows the ETF to distribute high dividends, further attracting investors seeking consistent returns.
- Market Dynamics Shift: As potential disruptions in global oil and gas supply chains arise, investors may shift towards North American energy assets, improving MLPs' negotiating positions and increasing volumes under contracts, thus yielding greater returns amid future market fluctuations.
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Analyst Views on EQNR
Wall Street analysts forecast EQNR stock price to fall
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 41.530
Low
22.00
Averages
23.89
High
25.79
Current: 41.530
Low
22.00
Averages
23.89
High
25.79
About EQNR
Equinor ASA, formerly Statoil ASA is a Norway-based international energy company. The Company’s purpose is to turn natural resources into energy. Equinor sells crude oil and delivers natural gas to the European market. It is also engaged in processing, refining, offshore wind and carbon capture and storage activities. Equinor ASA has five reporting segments: Exploration & Production Norway (E&P Norway), Exploration & Production International (E&P International), Exploration & Production USA (E&P USA), Marketing, Midstream & Processing (MMP) and Renewables (REN). The Company has several subsidiaries such as Equinor Nigeria Energy Company Ltd, Equinor Wind Power AS, Equinor International Netherlands BV and Equinor Brasil Energia Ltda.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Impact of Strait of Hormuz Closure on Oil Prices
- Crude Supply Tightness: The IEA reports that 25% of global seaborne oil flows through the Strait of Hormuz, and the prospect of its closure has driven oil prices up, prompting investors to consider U.S. companies like Devon Energy and Diamondback Energy to mitigate supply risks and secure capital returns.
- LNG Trade Disruption: Approximately 20% of global LNG trade passes through the Strait, and its closure will lead to rising prices worldwide, particularly impacting Europe; investors might look to Norway's Equinor and Australia's Woodside Energy to fill the supply gap in Asia.
- Refining Profit Surge: Refining stocks such as PBF Energy and Valero Energy have seen significant gains in 2026, with the 3-2-1 crack spread soaring from $20 at the start of the year to over $58, indicating that Asian refiners are facing higher crude procurement costs due to product shortages from the Gulf.
- Fertilizer Price Surge: The blockade of the Strait has stranded many fertilizer-laden ships, causing prices to soar and severely impacting Asian and African countries reliant on Gulf fertilizers; investors are turning to U.S. producers like CF Industries to navigate the tightening global fertilizer supply situation.
See More
Closure of Strait of Hormuz Disrupts Global Energy Markets
- Oil Price Surge: The International Energy Agency reports that 25% of the world's seaborne oil flows through the Strait of Hormuz, and its closure has led to a sharp increase in oil prices, destabilizing global energy markets, particularly affecting import-dependent nations.
- LNG Trade Disruption: Approximately 20% of global LNG trade passes through the Strait, and Iran's threats to energy infrastructure create uncertainty in LNG supply, potentially driving up global prices, especially pressuring the European market.
- Refining Sector Gains: Due to crude oil supply shortages, the refining crack spread has skyrocketed from $20 at the beginning of the year to $58, significantly boosting stocks of refining companies like PBF Energy and Valero Energy, indicating strong profit potential in the current market environment.
- Fertilizer Price Increases: The blockade of the Strait has left many fertilizer-laden ships stranded, causing fertilizer prices to soar, which poses a significant challenge for Asian and African countries reliant on Gulf fertilizers, prompting investors to focus on U.S. producers like CF Industries.
See More
IRAN STICKS TO HARDLINE POSITION—WAR WILL PERSIST, DISMISSES U.S. TIMELINE, RESPONDS COLDLY TO PROPOSAL, AND ASSERTS SOVEREIGNTY OVER THE STRAIT OF HORMUZ.
Iran's Stance on War: Iran maintains a hardline stance regarding ongoing conflicts, indicating that war will continue despite external pressures.
Rejection of U.S. Proposals: The Iranian government has rejected the U.S. timeline for negotiations and proposals related to regional security.
Response to U.S. Actions: Iran's leadership has issued a lukewarm response to U.S. proposals, signaling a lack of interest in compromise.
Demand for Sovereignty: Iran emphasizes its demand for sovereignty over the Strait of Hormuz, asserting its rights in the region amidst international tensions.
See More
Equinor Begins Development Drilling at $9B Raia Pre-Salt Field in Brazil
- Massive Investment: Equinor announced the commencement of development drilling at the Raia pre-salt field in Brazil's Campos Basin, with a total investment of $9 billion, marking the company's largest international investment to date and significantly enhancing its competitive position in the global market.
- Rich Reserves: The Raia field is estimated to hold over 1 billion barrels of oil equivalent in recoverable reserves, with Equinor holding a 35% stake in partnership with Repsol Sinopec Brasil and Petrobras, ensuring a strategic foothold in the Brazilian market.
- Drilling Operations Initiated: Drilling operations have begun on the Valaris DS-17 drillship, with plans to drill six wells in the Raia area at a water depth of approximately 2,900 meters, laying the groundwork for future production.
- Strong Production Capacity: The project will feature a large floating production, storage, and offloading vessel capable of handling over 125,000 barrels per day of condensate and 16 million cubic meters per day of natural gas, with production expected to launch in 2028, potentially meeting 15% of Brazil's natural gas demand.
See More
PRESIDENT DONALD TRUMP DESCRIBES INITIAL U.S.-IRAN DISCUSSIONS AS "EXCELLENT," STATING TEHRAN SEEKS PEACE AND HAS COMMITTED TO AVOIDING NUCLEAR WEAPONS.
Trump's Remarks on Talks: President Donald Trump described the preliminary U.S.-Iran talks as "very, very good."
Iran's Stance on Peace: Iran, represented by Tehran, expressed a desire for peace and has agreed not to pursue nuclear weapons.
See More
Equinor Acquires 230 MW Wind Project in Brazil
- Project Acquisition: Equinor announced its acquisition of the 230 MW Esquina do Vento onshore wind project in Brazil, which will strengthen its integrated power portfolio in a core market, although financial terms were not disclosed, the project is expected to drive long-term growth potential for the company.
- Equipment Supply Agreement: Vestas will supply 51 turbines for the project, with installation expected to begin in March 2027 and all turbines slated for completion by year-end 2027, ensuring timely project commissioning to meet market demand.
- Long-term Service Agreement: Vestas will also be responsible for operation and maintenance under a 30-year service agreement, which not only ensures the long-term stable operation of the equipment but also provides Vestas with a continuous revenue stream, enhancing its competitive position in the market.
- Market Confidence: Vestas stated that the Esquina do Vento wind project sends a clear signal of confidence in Brazil's wind market and marks another step in the sector's recovery, with the project expected to generate enough electricity to power 520,000 homes, further promoting the adoption of renewable energy.
See More
Impact of Strait of Hormuz Closure on Oil Prices
- Crude Supply Tightness: The IEA reports that 25% of global seaborne oil flows through the Strait of Hormuz, and the prospect of its closure has driven oil prices up, prompting investors to consider U.S. companies like Devon Energy and Diamondback Energy to mitigate supply risks and secure capital returns.
- LNG Trade Disruption: Approximately 20% of global LNG trade passes through the Strait, and its closure will lead to rising prices worldwide, particularly impacting Europe; investors might look to Norway's Equinor and Australia's Woodside Energy to fill the supply gap in Asia.
- Refining Profit Surge: Refining stocks such as PBF Energy and Valero Energy have seen significant gains in 2026, with the 3-2-1 crack spread soaring from $20 at the start of the year to over $58, indicating that Asian refiners are facing higher crude procurement costs due to product shortages from the Gulf.
- Fertilizer Price Surge: The blockade of the Strait has stranded many fertilizer-laden ships, causing prices to soar and severely impacting Asian and African countries reliant on Gulf fertilizers; investors are turning to U.S. producers like CF Industries to navigate the tightening global fertilizer supply situation.
See More
Closure of Strait of Hormuz Disrupts Global Energy Markets
- Oil Price Surge: The International Energy Agency reports that 25% of the world's seaborne oil flows through the Strait of Hormuz, and its closure has led to a sharp increase in oil prices, destabilizing global energy markets, particularly affecting import-dependent nations.
- LNG Trade Disruption: Approximately 20% of global LNG trade passes through the Strait, and Iran's threats to energy infrastructure create uncertainty in LNG supply, potentially driving up global prices, especially pressuring the European market.
- Refining Sector Gains: Due to crude oil supply shortages, the refining crack spread has skyrocketed from $20 at the beginning of the year to $58, significantly boosting stocks of refining companies like PBF Energy and Valero Energy, indicating strong profit potential in the current market environment.
- Fertilizer Price Increases: The blockade of the Strait has left many fertilizer-laden ships stranded, causing fertilizer prices to soar, which poses a significant challenge for Asian and African countries reliant on Gulf fertilizers, prompting investors to focus on U.S. producers like CF Industries.
See More
IRAN STICKS TO HARDLINE POSITION—WAR WILL PERSIST, DISMISSES U.S. TIMELINE, RESPONDS COLDLY TO PROPOSAL, AND ASSERTS SOVEREIGNTY OVER THE STRAIT OF HORMUZ.
Iran's Stance on War: Iran maintains a hardline stance regarding ongoing conflicts, indicating that war will continue despite external pressures.
Rejection of U.S. Proposals: The Iranian government has rejected the U.S. timeline for negotiations and proposals related to regional security.
Response to U.S. Actions: Iran's leadership has issued a lukewarm response to U.S. proposals, signaling a lack of interest in compromise.
Demand for Sovereignty: Iran emphasizes its demand for sovereignty over the Strait of Hormuz, asserting its rights in the region amidst international tensions.
See More
Equinor Begins Development Drilling at $9B Raia Pre-Salt Field in Brazil
- Massive Investment: Equinor announced the commencement of development drilling at the Raia pre-salt field in Brazil's Campos Basin, with a total investment of $9 billion, marking the company's largest international investment to date and significantly enhancing its competitive position in the global market.
- Rich Reserves: The Raia field is estimated to hold over 1 billion barrels of oil equivalent in recoverable reserves, with Equinor holding a 35% stake in partnership with Repsol Sinopec Brasil and Petrobras, ensuring a strategic foothold in the Brazilian market.
- Drilling Operations Initiated: Drilling operations have begun on the Valaris DS-17 drillship, with plans to drill six wells in the Raia area at a water depth of approximately 2,900 meters, laying the groundwork for future production.
- Strong Production Capacity: The project will feature a large floating production, storage, and offloading vessel capable of handling over 125,000 barrels per day of condensate and 16 million cubic meters per day of natural gas, with production expected to launch in 2028, potentially meeting 15% of Brazil's natural gas demand.
See More
PRESIDENT DONALD TRUMP DESCRIBES INITIAL U.S.-IRAN DISCUSSIONS AS "EXCELLENT," STATING TEHRAN SEEKS PEACE AND HAS COMMITTED TO AVOIDING NUCLEAR WEAPONS.
Trump's Remarks on Talks: President Donald Trump described the preliminary U.S.-Iran talks as "very, very good."
Iran's Stance on Peace: Iran, represented by Tehran, expressed a desire for peace and has agreed not to pursue nuclear weapons.
See More
Equinor Acquires 230 MW Wind Project in Brazil
- Project Acquisition: Equinor announced its acquisition of the 230 MW Esquina do Vento onshore wind project in Brazil, which will strengthen its integrated power portfolio in a core market, although financial terms were not disclosed, the project is expected to drive long-term growth potential for the company.
- Equipment Supply Agreement: Vestas will supply 51 turbines for the project, with installation expected to begin in March 2027 and all turbines slated for completion by year-end 2027, ensuring timely project commissioning to meet market demand.
- Long-term Service Agreement: Vestas will also be responsible for operation and maintenance under a 30-year service agreement, which not only ensures the long-term stable operation of the equipment but also provides Vestas with a continuous revenue stream, enhancing its competitive position in the market.
- Market Confidence: Vestas stated that the Esquina do Vento wind project sends a clear signal of confidence in Brazil's wind market and marks another step in the sector's recovery, with the project expected to generate enough electricity to power 520,000 homes, further promoting the adoption of renewable energy.
See More
