Energy shares advance globally as oil pushes back above $100 on Hormuz tensions

Global oil and gas stocks moved higher on Monday as crude prices climbed past the $100-per-barrel mark, following U.S. action to restrict maritime activity linked to Iran in the Strait of Hormuz after negotiations between Washington and Tehran broke down.

Brent crude rose 7.3% to $102.16 per barrel by 08:35 GMT, while U.S. West Texas Intermediate jumped roughly 8% to $104.24. Both benchmarks had ended the previous session lower before rebounding sharply.

The surge in oil prices lifted energy equities across major markets. In the U.S., ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX) each gained more than 2% in premarket trading, while ConocoPhillips (NYSE:COP) rose 3.4% and Occidental Petroleum (NYSE:OXY) added 3.1%.

Across Europe, BP plc (LSE:BP.) and Shell plc (LSE:SHEL) both climbed around 1.4%, while TotalEnergies (EU:TTE) edged up 1.3% and Repsol (BIT:1REP) gained roughly 2%.

U.S. President Donald Trump said on Sunday that the Navy would move to enforce a blockade in the Strait of Hormuz, escalating tensions after prolonged talks with Iran failed to yield an agreement and putting a fragile two-week ceasefire at risk. He also cautioned that fuel prices could remain elevated through the November midterm elections.

U.S. Central Command confirmed the measure would take effect at 10 a.m. ET on Monday, targeting vessels traveling to and from Iranian ports in the Arabian Gulf and Gulf of Oman. However, ships transiting the Strait between non-Iranian ports would not be affected, according to CENTCOM.

The latest escalation follows a brief period of calm after a ceasefire had allowed shipping routes to reopen, sending oil prices sharply lower last week before the current rebound.

Rabobank energy strategist Joe DeLaura had warned during last week’s dip that markets were underestimating risks, arguing that futures were “far too optimistic” and that there was “so much risk to the upside” still not reflected in prices.

“There’s permanent production loss from the shut ins in Saudi, Kuwait, UAE and Iraq. Refinery and pipeline damage plus the physical restart times, on top of the backlog of 800+ tankers trapped on the west side of the Strait,” he told Investing.com.

“Brent futures seem to have a floor around $90, and I think no ceasefire (no easy opening of a mined strait of Hormuz) means that futures will eventually have to start matching physical markets around $120-130/bbl (or more!).”