TLDR
- Occidental Petroleum, Exxon Mobil, and Chevron all gained in pre-market trading after oil prices hit five-month highs
- U.S. and Israel joint military action against Iran’s nuclear sites sparked the oil price surge to $81.40 for Brent crude
- Exxon Mobil has delivered 136% returns over five years and 5,190% all-time gains since listing
- Goldman Sachs predicts oil could reach $110 per barrel before moderating to $95 in Q4 2025
- Oil prices fluctuated during European trading session despite initial surge from geopolitical tensions
Energy stocks climbed higher in Monday pre-market trading as oil prices surged to their highest levels since January. The rally was driven by escalating geopolitical tensions in the Middle East.
Occidental Petroleum jumped 1.95% in pre-market trading. Exxon Mobil gained 1.53% while Chevron rose 1.31%. The moves came as crude oil prices spiked on supply disruption concerns.
The catalyst for Monday’s oil price surge was announced joint military action by the U.S. and Israel against Iran’s nuclear facilities. President Donald Trump revealed the operation, sending shockwaves through energy markets worldwide.
Brent crude oil reached $81.40 per barrel at the start of the week. U.S. crude hit $78.40, marking five-month highs for both benchmarks. The price spikes reflected immediate market fears about potential supply chain disruptions.
However, oil prices showed volatility throughout the trading session. Prices fluctuated and briefly turned negative during European morning hours. The instability highlighted how quickly sentiment can shift in commodity markets.
Geopolitical Risk Premium
The Middle East conflict has not yet caused direct disruption to oil supply chains. However, traders have added a geopolitical risk premium to oil prices. This premium reflects potential future supply problems rather than current shortages.
BREAKING: Iranian parliament has just voted to close the Strait of Hormuz.
– 20% of global oil passes through the Strait
HERE’s what to expect if successful:
– Oil Prices could spike by 30–50%+ almost immediately
– Global Inflation likely Rises
– U.S. Gas Prices likely… pic.twitter.com/WC4dmeagRE
— Brian Krassenstein (@krassenstein) June 22, 2025
Goldman Sachs issued forecasts for oil prices in the coming months. The investment bank predicted oil could surge to $110 per barrel in the near term. They expect prices to moderate to $95 per barrel in the fourth quarter of 2025.
Exxon Mobil has been a standout performer among energy stocks over longer time periods. The company has delivered impressive returns across multiple timeframes. Recent data shows the stock closed at $114.07 in a positive trading session.
The energy giant’s five-year performance has been particularly strong. Shareholders have seen 136.48% gains over this period. This performance demonstrates the company’s ability to navigate different market cycles.
Long-Term Performance Strength
Exxon Mobil’s all-time returns tell an even more compelling story. The stock has generated 5,190% returns since its original listing. This translates to massive wealth creation for long-term shareholders.
The company’s recent performance metrics show consistent positive trends. One-month gains reached 9.09% while six-month returns hit 8.14%. Year-to-date performance stands at 5.32% with one-year gains of 3.75%.
These returns reflect Exxon Mobil’s position as an integrated energy company. The firm benefits from disciplined capital allocation and operational efficiency. Its role in meeting global energy needs provides a stable foundation for growth.
Energy sector fundamentals continue to support stock prices. Rising oil prices directly benefit companies like Exxon Mobil through higher profit margins. The current geopolitical environment has created additional upward pressure on crude prices.
Market analysts view Exxon Mobil as a cornerstone investment for diversified portfolios. The company offers stability through its dividend payments and direct exposure to the energy sector.
Oil price movements on Monday reflected the immediate impact of geopolitical developments on energy markets. Brent crude reached $81.40 while U.S. crude hit $78.40, both representing five-month highs driven by the announced U.S.-Israel military action against Iran’s nuclear sites.
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