Stocks in the energy, defense, shipping, and travel sectors are expected to see heightened activity on Monday as tensions between Israel and Iran persist for a fourth day without signs of easing.
Brent crude oil prices surged early in the session, rising as much as 5.5% to reach $78.32 per barrel, before giving back most of those gains. This volatility is likely to influence energy sector stocks such as Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), ConocoPhillips (NYSE:COP), Occidental Petroleum (NYSE OXY), and EOG Resources (NYSE EOG).
Shipping companies are also positioned for movement amid the conflict. In European trading, AP Moller-Maersk shares edged up 0.6%, while Hapag-Lloyd AG climbed 1.8%. U.S.-listed shipping firms potentially impacted include ZIM Integrated Shipping Services (NYSE:ZIM), Star Bulk Carriers (NASDAQ:SBLK), and Matson (NYSE:MATX).
Defense contractors, which rallied on Friday due to expectations of increased military expenditure triggered by the conflict, are likely to remain in focus today. Key names to watch include Lockheed Martin (NYSE:LMT), Northrop Grumman (NYSE:NOC), RTX, General Dynamics (NYSE:GD), and L3Harris Technologies (NYSE:LHX).
Conversely, airline stocks may experience downward pressure as rising oil prices typically translate into higher jet fuel costs, squeezing carriers’ profit margins. Companies such as Delta Air Lines (NYSE:DAL), United Airlines, American Airlines (NASDAQ:AAL), and Southwest Airlines (NYSE:LUV) could be affected.
On Friday, travel shares fell while energy stocks gained ground following Israel’s military strikes against Iran.
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