Energy shares advanced in pre-market trading on Monday as oil prices surged following overnight U.S. strikes against Iranian targets in the Gulf region.
Brent crude futures rose 3.5% to $91.20 a barrel by 05:06 ET, while U.S. West Texas Intermediate futures gained 3.5% to $86.30 a barrel. The gains followed reports of U.S. military action against missile launchers on Larak Island, part of a broader escalation in regional tensions.
Major energy producers led gains in premarket activity. Chevron shares rose 1.7%, while Exxon Mobil advanced 1.5%. Occidental Petroleum climbed 1.8%, ConocoPhillips gained 1.3%, and Halliburton added 2.5%. Schlumberger and Phillips 66 also rose 1.7% and 1.0%, respectively.
The renewed hostilities come after U.S. forces struck two missile launchers on Larak Island and Iranian state media reported retaliatory strikes on two U.S. air bases in Jordan. U.S. Treasury Secretary Scott Bessent told Reuters on Sunday that Washington is likely to introduce new secondary sanctions against Iran on a weekly basis going forward.
President Trump posted on social media that Iran's Kharg Island energy hub was being "blown to smithereens," though Iranian state media denied any strike occurred there and said oil operations were continuing normally. The Strait of Hormuz, a critical chokepoint for global oil supply, carries roughly one-fifth of the world's oil transits.
