Energy stocks rise premarket as oil prices climb on Middle East supply fears
Investing.com — Shares of major U.S. energy companies gained in premarket trading Tuesday, tracking a rise in oil prices after Iran warned that Gulf oil and gas infrastructure could be targeted in retaliation for attacks on its own assets.
Brent crude futures for November delivery rose 2.3% to $99.19 a barrel by 04:53 ET (08:53 GMT), while U.S. West Texas Intermediate crude climbed 3.3% to $94.49 a barrel. Brent settled nearly 1% higher on Monday after briefly touching $98 a barrel in the prior session.
Tracking these gains, Exxon Mobil rose 1.8%, and Chevron gained 1.5% in premarket trading. ConocoPhillips added 1.6%, while Diamondback Energy and Marathon Petroleum each rose 1.1%. Valero Energy climbed 1.9%.
The moves followed a weekend of tit-for-tat strikes between the U.S. and Iran, including attacks on shipping. Iran warned that oil and gas infrastructure across the Gulf could become a target in retaliation for strikes on its own assets, and threatened to respond to U.S. “economic warfare” with a maritime exclusion zone across the Persian Gulf.
The Strait of Hormuz remains the central focus for oil markets. Iran said it plans to introduce a restricted zone in the Gulf along with an alternative shipping corridor, stoking concerns that tighter maritime controls could further slow tanker traffic through the critical waterway.
At the same time, Iran said a deal with Oman over arrangements for the strait was close, offering a potential mechanism to ease shipping disruptions.
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