U.S.-listed energy equities gained ground in premarket trading on Monday after oil benchmarks climbed more than 2% amid fresh hostilities between American forces and Iranian targets.
By 05:06 ET (09:06 GMT), Brent crude futures were trading 3.5% higher at $91.20 a barrel, while U.S. West Texas Intermediate also rose 3.5% to $86.30 a barrel. The jump in energy prices pushed a range of sector stocks higher before regular trading began.
Among the large integrated oil names, Chevron advanced 1.7% and Exxon Mobil rose 1.5%. Independent producers also posted gains with Occidental Petroleum up 1.8% and ConocoPhillips climbing 1.3%. Oilfield services firms were higher as well: Halliburton increased 2.5% and SLB rose 1.7%. Refining companies participated in the move, with Marathon Petroleum up 0.6% and Phillips 66 gaining 1%.
The market reaction followed a sequence of military and media reports. U.S. forces said they struck two missile launchers on Iran's Larak Island in the Strait of Hormuz on Sunday. That action represented the first confirmed U.S. strikes on Iranian territory since late July.
Iranian state media reported on Monday that the Islamic Revolutionary Guard Corps responded by striking two U.S. air bases in Jordan. Reporting on the events was further clouded when President Trump posted briefly on social media claiming Iran's Kharg Island energy hub had been "blown to smithereens," attaching an AI-generated video clip. The post provided no corroborating detail, and there was no independent evidence that Kharg Island had been attacked.
Iran denied that Kharg Island had been struck and said oil operations there were continuing normally.
Efforts to resolve the confrontation remained stalled as international mediators worked to reopen the Strait of Hormuz - a strategic corridor that carried roughly one-fifth of global oil supply prior to the outbreak of fighting at the end of February. The security of that route remains central to market concerns about supply.
On the diplomatic and sanctions front, U.S. Treasury Secretary Scott Bessent told Reuters on Sunday that Washington is likely to implement new secondary sanctions against Iran on a weekly basis going forward.
The combined effect of the reported strikes, retaliatory actions, social media confusion and potential for additional sanctions contributed to the morning rise in oil and the corresponding strength in energy-related equities.