Shares of U.S. energy companies experienced a notable increase in premarket trading on Monday, buoyed by a rise in oil prices. West Texas Intermediate rose by 3% to reach $104.3 per barrel, while Brent crude advanced by 3.2%, hitting $98.40 per barrel. The uptick in oil prices was largely driven by heightened tensions in the Middle East, particularly following President Donald Trump’s declaration that Iran’s response to a recent U.S. peace proposal was “unacceptable.” This statement has instigated concerns over potential supply disruptions, especially with the Strait of Hormuz remaining largely inaccessible, which has tightened the global oil market.
In reaction to the shifting landscape, major energy companies saw their stock prices rise. Chevron experienced a gain of 1%, while Exxon Mobil’s shares climbed approximately 1%. Meanwhile, oil and gas producers enjoyed even more significant increases, with APA Corp, SM Energy, Devon Energy, and Occidental Petroleum boosting their stocks between 1.5% and 2.6%.
The oilfield service sector also saw positive movement, with Liberty Energy gaining 1% and Halliburton increasing by 1.8%. Refining companies were not left behind either; Phillips 66 and Marathon Petroleum recorded gains of 1% and 1.4%, respectively.
As tensions continue to escalate in the region, the energy market remains vigilant, with investors closely monitoring developments that could further impact supply chains and pricing structures in the days ahead.
