Energy Stocks Rally as Middle East Tensions Spike

ExxonMobil, Chevron, and ConocoPhillips each saw gains exceeding 1% following the latest geopolitical flare-up. Oil prices hit a six-week peak after the U.S. conducted its eleventh consecutive night of strikes against Iranian interests. President Trump further signaled a shift in strategy, threatening to target Iranian infrastructure, including bridges and power plants, should Tehran threaten maritime traffic in the critical waterway.

Despite the price surge, domestic fundamentals remain mixed. The U.S. Energy Information Administration reported an unexpected build in commercial crude inventories last week, driven by a simultaneous uptick in imports and a decline in exports. Meanwhile, Equinor is capitalizing on the market climate, announcing an increased quarterly share buyback. The Norwegian firm reported its second-quarter adjusted operating income soared over 75% to $11.48 billion, bolstered by production growth and the favorable pricing environment created by the regional instability.