As the conflict between Israel and Iran intensifies, investors are increasingly shifting their focus to energy and shipping stocks.
In this context, three names have emerged as standout beneficiaries, each posting triple-digit gains in pre-market trading on Monday.
Battalion Oil (NYSEAMERICAN: BATL), an energy exploration and production company, soared 164% to $2.70 in pre-market trading after ending the previous session nearly 15% higher.
Similarly, marine fuel bunkering services provider, TMD Energy (NYSEAMERICAN: TMDE), extended its rally, surging 204% to $2.72 in early trading, following a 77% gain on Friday, bringing it to $1.33.
OceanPal (NASDAQ: OP), a shipping and transportation firm, also joined the rally, with shares climbing 101% to $3.25 in pre-market activity.
Combined, the three stocks recorded an average gain of 156% in early trading on June 16.
Why energy and shipping stocks are surging
These gains highlight the market’s response to potential disruptions in Middle Eastern oil supplies. With crude prices poised to spike, companies like Battalion Oil and TMD Energy stand to benefit.
At the same time, OceanPal is gaining from rising freight rates as global shipping routes face increased risk. Notably, shipping stocks often gain during geopolitical turmoil due to rising demand for the movement of goods.
Further fueling concern is the possibility of Iran closing the Strait of Hormuz, a strategic waterway that handles about 20% of the world’s oil. Any disruption there could send oil prices soaring and trigger a broader energy crisis.
In short, while the full scale and duration of the conflict remain uncertain, investors should brace for continued volatility, particularly in sectors vulnerable to energy and supply chain shocks. With no diplomatic resolution in sight, the risk of actual supply disruption remains significant.
Featured image via Shutterstock
