Occidental Petroleum Corp. shares rose more than 3% in pre-market trading on Monday, reaching $60.27, as oil prices surged over 3% amid escalating geopolitical tensions in the Middle East.
The gains followed U.S. military strikes on Iranian missile launchers on Larak Island in the Strait of Hormuz on Sunday. Iran’s Revolutionary Guards responded by attacking two U.S. airbases in Jordan, further intensifying regional instability. Oil benchmarks such as Brent crude and WTI have climbed sharply in response to the heightened risks to supply routes.
Occidental’s shares remain well below their 52-week high of $67.45, but the stock has outperformed the broader U.S. equity market, which traded modestly lower on Monday. The S&P 500 fell 0.3%, the Dow Jones Industrial Average declined 0.2%, and the Nasdaq Composite dropped 0.2%.
Analysts have cited Occidental’s deleveraged balance sheet and improving free cash flow as key reasons for the stock’s upward momentum. Evercore ISI upgraded Occidental from Underperform to Outperform in early summer, raising its price target from $58 to $65. The consensus among 24 covering firms remains bullish, with a 12-month average price target of $66.83.
The company reported record free cash flow and significant debt reduction in its second-quarter 2026 results, reinforcing its financial strength amid volatile market conditions.
