Occidental Petroleum's stock soared 5% during intraday trading on Thursday, driven by a combination of positive analyst actions and a sharp rise in oil prices due to escalating Middle East tensions.

The surge follows significant upgrades from two major financial institutions. Wells Fargo double-upgraded Occidental to Overweight from Underweight and raised its price target to $69 from $47. Similarly, Piper Sandler upgraded the stock to Overweight from Neutral and increased its target price to $66 from $54, citing its increased price deck for oil.

These bullish calls coincide with a broader spike in crude oil prices, which surged to around $100 a barrel after reports that two tankers were set ablaze in Iraqi waters following apparent Iranian strikes. The rising oil prices are expected to directly benefit producers like Occidental. Broader market reports noted that energy companies, including Occidental, were trading higher in pre-market and early trading sessions amid the commodity price surge.