Smallcap stock hits 10% lower circuit after inclusion in Additional Surveillance Measures (ASM)
Stocktwits - Shares of energy companies rallied on Tuesday as oil prices popped amid the conflict between Iran and Israel escalating.
Both West Texas Intermediate (WTI) and Brent crude futures rose more than 3% in afternoon trading, while the United States Oil Fund (NYSE:USO), a popular oil-tracking ETF, climbed 3.8%.
Shares of the biggest players in the energy sector, Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), and Shell (SHEL), also gained amid heightened geopolitical tensions and speculation over potential supply disruptions.
Exxon and Chevron’s stocks rose more than 2%, while shares of Shell climbed 1.3% in afternoon trade.
Smaller energy companies such as Houston American Energy Corp. (HUSA) and Indonesia Energy Corp. (NYSE:INDO) saw even more dramatic moves.
Houston American’s stock was up more than 85% in afternoon trade, while Indonesia Energy’s stock jumped 36%.
Robin Energy (RBNE) rocketed further than the others, doubling its market value with gains of 120% during the day.
According to Woodside Energy CEO Meg O’Neill and Baker Hughes (NASDAQ:BKR) CEO Lorenzo Simonelli, it is currently very difficult to predict which way oil prices are likely to sway in the near future.
However, O’Neill warned that any activity that impacts the Strait of Hormuz, which supports the transportation of roughly one-fifth of the world’s oil supply, could drive prices higher.
Defense stocks such as Lockheed Martin (NYSE:LMT) and RTX Corp. (RTX) also surged amid escalating tensions in the Middle East. Lockheed’s stock gained 2.6% while RTX’s stock and shares of Northrop Grumman (NYSE:NOC) and L3Harris Technologies (LHX) were up more than 1%.
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