Energy Stocks Surge Amid Rising Oil Prices from U.S.-Iran Conflict
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 07 2026
0mins
Should l Buy CVX?
Source: CNBC
- Oil Price Surge Impact: The ongoing U.S.-Iran conflict has driven oil prices up, resulting in a 34% increase in energy stocks in 2026, which not only boosts investor confidence but also raises concerns about future market trends.
- Investor Caution: Despite the strong performance of energy stocks, investors are adopting a cautious stance, particularly as they await President Trump's deadline for Iran, which could significantly influence market sentiment.
- Profit-Taking Strategies: Some investors, like Stephanie Link from Hightower Advisors, have opted to sell their Chevron positions after realizing a 32% gain, indicating a growing willingness among market participants to lock in short-term profits in energy stocks.
- Future Risk Assessment: Analyst Sarat Sethi warns that if the conflict extends longer than anticipated, energy companies' earnings could be adversely affected, leading to a potential decline in demand and stock prices, necessitating a careful approach from investors.
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Analyst Views on CVX
Wall Street analysts forecast CVX stock price to fall
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 186.640
Low
158.00
Averages
176.95
High
206.00
Current: 186.640
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
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.
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See More
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- Increased Stake in Alphabet: Abel tripled Berkshire's stake in Alphabet to approximately $23 billion by purchasing over 36 million Class A shares and 3.5 million Class C shares, indicating confidence in tech stocks and a focus on future growth potential.
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See More
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- Portfolio Adjustments: In the first quarter, Berkshire trimmed its stake in Chevron while significantly increasing its investment in Alphabet, now its seventh-largest holding, indicating a strategic shift towards technology stocks.
- Impact of Executive Changes: Following the departure of investment manager Todd Combs, Berkshire sold several stocks last quarter, including a complete exit from Amazon, highlighting the necessity of adjusting investment strategies in response to leadership changes.
- Cash Reserve Challenges: Buffett acknowledged the current investment environment is not ideal, with Berkshire's cash reserves nearing $400 billion; nevertheless, the company resumed stock buybacks in the first quarter, signaling a search for suitable investment opportunities.
See More
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- Oil Price Surge: Driven by the war in Iran and its impact on Middle Eastern oil supplies, Brent crude prices have skyrocketed by approximately 80% this year to around $110 per barrel, significantly affecting global oil price expectations and market dynamics.
- Demand Outlook Revision: The International Energy Agency (IEA) has revised its global oil demand forecast down by 420,000 barrels per day, indicating that demand destruction from soaring prices is occurring, although this figure is minor compared to the ongoing supply shortfall.
- Escalating Supply Shortage: Oil production in the Middle East has plummeted by over 50%, with Iraq's output dropping from 4.9 million barrels per day to 1.6 million, leading to an overall supply loss exceeding 10 million barrels, forcing countries to draw from global inventories to meet demand.
- Investment Opportunities Arise: Despite the demand destruction caused by rising oil prices, consumption remains above supply levels, suggesting that elevated prices will persist, particularly making energy stocks like Exxon and Chevron attractive investment options with significant upside potential.
See More
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- Profit Recovery: U.S. refiners are experiencing a significant rebound in profitability from renewable fuels, with Valero's renewable diesel segment swinging to a $139 million profit in Q1 from a $141 million loss a year earlier, indicating a market recovery driven by policy support.
- Policy Drivers: The U.S. EPA's mandate for refiners to increase biofuel blending by 60% over the next two years not only boosts demand for biodiesel and renewable diesel but also provides refiners with stable market expectations, aiding their profitability recovery.
- Market Dynamics: As demand for biofuels rises, the price of RIN credits has surged over 80% to above $2 each, providing refiners with an additional revenue stream that further enhances their financial performance amid tight diesel supplies.
- Future Uncertainty: Despite strong demand, there are uncertainties regarding whether refiners will commit to expanding production capacity, especially as diesel prices have surged 46% due to the Iran war, making conventional diesel production more attractive than renewable diesel expansion.
See More
