Energy Stocks Rise as Oil Jumps on Middle East Tensions

Shares of power giants, including ExxonMobil (XOM) and  Chevron (CVX), are extending gains successful premarket trading Wednesday arsenic worries of a broader Middle East conflict assistance lipid prices. 

Crude prices are rising astir 3% aft Iran launched a ballistic rocket attack connected Israel. Brent crude futures surpassed nan $75-per-barrel level they concisely crossed Tuesday connected fears of proviso constraints, while nan U.S. benchmark, West Texas Intermediate (WTI), is astatine almost $72 per barrel.

UBS Says Oil Positions Can Hedge Against Worsening Crisis

The conflict successful nan Middle East, isolated from raising humanitarian concerns, has "contributed to periods of marketplace volatility, amid concerns that a location warfare could interrupt lipid supplies," UBS Global Wealth Management Chief Investment Officer (CIO) Mark Haefele said successful a note.

Haefele said that while nan firm's guidelines lawsuit isn't for an all-out war, "positions successful lipid tin service arsenic a portfolio hedge against a worsening situation successful nan Middle East, while marketplace fundamentals are besides positive."

ExxonMobil shares, which person gained almost 20% year-to-date, were rising 1.7% successful premarket trading. Those of rival Chevron, whose $53 cardinal acquisition of Hess (HES) was cleared this week, are up astir 1.6%. Shares of Occidental Petroleum (OXY) and ConocoPhillips (COP) are rising astir 1.4% and 1.6%, respectively.