US energy companies were among the leading risers on Monday, as oil prices were lifted following the US and Israel’s military strikes on Iran.
The price of WTI crude oil climbed 6.4% to seven month high over $71 a barrel after the US-Israel launched ‘Operation Epic Fury’, which included the assassination of Iran’s supreme leader and other senior officials. Iran’s retaliation included missile and drone attacks on sites across the region, including Qatar, United Arab Emirates, Saudi Arabia, Bahrain and Kuwait.
The key Strait of Hormuz was not technically closed, but a spike in insurance rates led to tankers in the area turning around and dropping anchor.
Saudi Arabia’s energy ministry confirmed that operations at its massive Ras Tanura refinery had been affected due to “damage from falling debris” after two drones were intercepted in the vicinity.
European natural gas prices surged approximately 50% after Qatar said it was suspending LNG production due to Iranian drone strikes.
Shares in ConocoPhillips (NYSE:COP, XETRA:YCP) jumped 4.3%, while fellow supermajors Exxon Mobil Corp (NYSE:XOM, XETRA:XONA) and Chevron Corporation (NYSE:CVX, XETRA:CHV) rose 1.8% and 1.7%.
There were 2%-plus gains for Marathon Petroleum, APA, Valero Energy, Coterra Energy, Devon Energy, Phillips 66, EOG Resources and Occidental Petroleum.