Occidental Petroleum Corp. shares climbed more than 3% in pre-market trading on Monday, reaching $60.27, as oil prices surged following geopolitical developments in the Middle East.
U.S. forces conducted strikes on two missile launchers on Iran's Larak Island on Sunday, marking the first confirmed American strikes on Iranian territory since late July. In response, Iran's Revolutionary Guards reported hitting two U.S. air bases in Jordan on Monday. The escalation contributed to a more than 3% increase in oil prices, providing a tailwind for energy equities.
The broader market showed mixed signals, with the S&P 500 down 0.3%, the Dow Jones Industrial Average down 0.2%, and the Nasdaq down 0.2% in pre-market trading. Occidental Petroleum's shares remain well below their 52-week high of $67.45.
Analysts have maintained a bullish stance on the stock. Evercore ISI upgraded Occidental Petroleum from Underperform to Outperform earlier this summer, raising its price target from $58 to $65. The upgrade cited a de-levered balance sheet and an improved free cash flow outlook. Across 24 covering firms, the stock holds a consensus Buy rating, with an average 12-month price target of $66.83.
Occidental Petroleum's second-quarter 2026 results highlighted strong performance, featuring record free cash flow and substantial debt reduction. These fundamentals continue to underpin investor confidence despite the stock's recent pullback from its yearly peak.
