Oil Prices Climb Due to U.S.-Iran Strain; These Stocks Are Benefiting.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 hours ago
0mins
Source: Barron's
- Oil Price Increase: Oil prices were rising early on Thursday due to market speculation.
- Investor Focus: Investors are particularly attentive to potential U.S. actions against Iran.
- Impact on Energy Stocks: The rising oil prices are positively influencing energy stocks.
- Market Sentiment: Overall market sentiment is being shaped by geopolitical tensions related to Iran.
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Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 150.680
Low
114.00
Averages
132.17
High
158.00
Current: 150.680
Low
114.00
Averages
132.17
High
158.00
About XOM
Exxon Mobil Corporation is an energy provider and chemical manufacturer. The Company’s principal business involves exploration for, and production of, crude oil and natural gas; the manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima systems, carbon materials, and lithium. Its Upstream segment explores for and produces crude oil and natural gas. The Energy Products, Chemical Products, and Specialty Products segments manufacture and sell petroleum products and petrochemicals. Energy Products segment includes fuels, aromatics, and catalysts and licensing. Chemical Products segment consists of olefins, polyolefins, and intermediates. Specialty Products segment includes finished lubricants, basestocks and waxes, synthetics, and elastomers and resins.
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.
US-Iran Tensions May Not Impact Stock Market
- Market Resilience: Despite rising tensions between the U.S. and Iran, the stock market has shown strong performance, with the S&P 500 up about 0.6% this week, while the Dow Jones and Nasdaq gained 0.3% and 0.9%, respectively, indicating investor resilience to geopolitical conflicts.
- Rising Oil Prices: Crude oil prices have surged, with West Texas Intermediate futures increasing approximately 6% this week to trade above $66 per barrel, while Brent futures also rose about 6%, reflecting concerns over potential supply disruptions due to military conflict.
- Historical Data Insights: Barclays' trading desk analysis shows that since September 1980, the S&P 500 has remained largely unchanged the day after geopolitical events, with slight gains on the day before and the day of such events, suggesting a generally optimistic market response.
- Investor Strategy Adjustments: Although the stock market is performing well, the S&P 500 is less than 2% below record levels, indicating that investors may consider trimming equity positions in anticipation of potential military escalation and its impact on market volatility.
See More
Occidental Shares Surge 6% Following Earnings Report, Driven by More Than Just Oil Prices.
- Stock Performance: Occidental Petroleum's stock increased by approximately 6% before the market opened on Thursday.
- Earnings Report: The rise in stock price followed the company's fourth-quarter earnings report, which exceeded analysts' expectations.
See More
Oil Prices Climb Due to U.S.-Iran Strain; These Stocks Are Benefiting.
- Oil Price Increase: Oil prices were rising early on Thursday due to market speculation.
- Investor Focus: Investors are particularly attentive to potential U.S. actions against Iran.
- Impact on Energy Stocks: The rising oil prices are positively influencing energy stocks.
- Market Sentiment: Overall market sentiment is being shaped by geopolitical tensions related to Iran.
See More
Trump Warns UK Against Leasing Diego Garcia Base
- Military Base Lease Controversy: Trump warned UK Prime Minister Keir Starmer that leasing the Diego Garcia military base is a “big mistake,” indicating that it may be necessary for U.S. strikes on Iran if nuclear talks fail, highlighting his deep concern for U.S. military strategy.
- Slow Progress in Iran Nuclear Talks: Despite Vice President JD Vance stating that Iran agreed to meet again in Geneva, Iran has not acknowledged Trump's core conditions, particularly zero uranium enrichment on its soil, complicating the negotiation landscape further.
- Military Readiness Status: Earlier satellite imagery confirmed that at least six B-2 Spirit bombers, constituting 30% of the U.S. stealth bomber fleet, were staged at Diego Garcia, preparing for potential military action, suggesting that Trump's comments may be paving the way for future military options.
- Significant Market Reaction: According to Polymarket, the odds of a U.S./Israel strike on Iran by February 28 surged from 24% to 38%, reflecting the market's heightened sensitivity to Trump's warning and investors' urgency regarding potential military actions.
See More
Energy Stocks Shine with APA and Exxon Leading Gains
- Energy Sector Performance: Energy stocks rose 1.4% on Wednesday, with APA Corp gaining 5.3% and Exxon Mobil Corp increasing by 3.0%, indicating strong sector performance that may attract more investor interest.
- ETF Performance: The Energy Select Sector SPDR ETF (XLE), which tracks the energy sector, was up 1.8% on the day and 22.32% year-to-date, reflecting optimistic market sentiment towards energy stocks and potentially driving more capital into the ETF.
- Year-to-Date Gains: APA Corp has risen 18.73% year-to-date, while Exxon Mobil Corp has increased by 25.94%, suggesting both companies are performing exceptionally well in the current market environment, which may enhance their appeal among investors.
- Industrial Sector Dynamics: The industrial sector rose 1.2%, with Global Payments Inc up 16.4% and Moody's Corp up 5.7%, indicating signs of recovery in industrial stocks that may provide new investment opportunities for investors.
See More
EXXON GUYANA PRESIDENT ANNOUNCES INTENT TO CONNECT LONGTAIL PROJECT GAS TO FUTURE BERBICE PIPELINE
- Gas Supply Plans: The President of Guyana has announced plans for gas supply from the Longtail project.
- Future Infrastructure: This gas supply is intended to be integrated into the future Berbice pipeline infrastructure.
See More
US-Iran Tensions May Not Impact Stock Market
- Market Resilience: Despite rising tensions between the U.S. and Iran, the stock market has shown strong performance, with the S&P 500 up about 0.6% this week, while the Dow Jones and Nasdaq gained 0.3% and 0.9%, respectively, indicating investor resilience to geopolitical conflicts.
- Rising Oil Prices: Crude oil prices have surged, with West Texas Intermediate futures increasing approximately 6% this week to trade above $66 per barrel, while Brent futures also rose about 6%, reflecting concerns over potential supply disruptions due to military conflict.
- Historical Data Insights: Barclays' trading desk analysis shows that since September 1980, the S&P 500 has remained largely unchanged the day after geopolitical events, with slight gains on the day before and the day of such events, suggesting a generally optimistic market response.
- Investor Strategy Adjustments: Although the stock market is performing well, the S&P 500 is less than 2% below record levels, indicating that investors may consider trimming equity positions in anticipation of potential military escalation and its impact on market volatility.
See More
Occidental Shares Surge 6% Following Earnings Report, Driven by More Than Just Oil Prices.
- Stock Performance: Occidental Petroleum's stock increased by approximately 6% before the market opened on Thursday.
- Earnings Report: The rise in stock price followed the company's fourth-quarter earnings report, which exceeded analysts' expectations.
See More
Oil Prices Climb Due to U.S.-Iran Strain; These Stocks Are Benefiting.
- Oil Price Increase: Oil prices were rising early on Thursday due to market speculation.
- Investor Focus: Investors are particularly attentive to potential U.S. actions against Iran.
- Impact on Energy Stocks: The rising oil prices are positively influencing energy stocks.
- Market Sentiment: Overall market sentiment is being shaped by geopolitical tensions related to Iran.
See More
Trump Warns UK Against Leasing Diego Garcia Base
- Military Base Lease Controversy: Trump warned UK Prime Minister Keir Starmer that leasing the Diego Garcia military base is a “big mistake,” indicating that it may be necessary for U.S. strikes on Iran if nuclear talks fail, highlighting his deep concern for U.S. military strategy.
- Slow Progress in Iran Nuclear Talks: Despite Vice President JD Vance stating that Iran agreed to meet again in Geneva, Iran has not acknowledged Trump's core conditions, particularly zero uranium enrichment on its soil, complicating the negotiation landscape further.
- Military Readiness Status: Earlier satellite imagery confirmed that at least six B-2 Spirit bombers, constituting 30% of the U.S. stealth bomber fleet, were staged at Diego Garcia, preparing for potential military action, suggesting that Trump's comments may be paving the way for future military options.
- Significant Market Reaction: According to Polymarket, the odds of a U.S./Israel strike on Iran by February 28 surged from 24% to 38%, reflecting the market's heightened sensitivity to Trump's warning and investors' urgency regarding potential military actions.
See More
Energy Stocks Shine with APA and Exxon Leading Gains
- Energy Sector Performance: Energy stocks rose 1.4% on Wednesday, with APA Corp gaining 5.3% and Exxon Mobil Corp increasing by 3.0%, indicating strong sector performance that may attract more investor interest.
- ETF Performance: The Energy Select Sector SPDR ETF (XLE), which tracks the energy sector, was up 1.8% on the day and 22.32% year-to-date, reflecting optimistic market sentiment towards energy stocks and potentially driving more capital into the ETF.
- Year-to-Date Gains: APA Corp has risen 18.73% year-to-date, while Exxon Mobil Corp has increased by 25.94%, suggesting both companies are performing exceptionally well in the current market environment, which may enhance their appeal among investors.
- Industrial Sector Dynamics: The industrial sector rose 1.2%, with Global Payments Inc up 16.4% and Moody's Corp up 5.7%, indicating signs of recovery in industrial stocks that may provide new investment opportunities for investors.
See More
EXXON GUYANA PRESIDENT ANNOUNCES INTENT TO CONNECT LONGTAIL PROJECT GAS TO FUTURE BERBICE PIPELINE
- Gas Supply Plans: The President of Guyana has announced plans for gas supply from the Longtail project.
- Future Infrastructure: This gas supply is intended to be integrated into the future Berbice pipeline infrastructure.
See More
