Occidental Petroleum (OXY) stock surged 5.00% in pre-market trading on Friday, as escalating geopolitical tensions in the Middle East and a consequent spike in oil prices bolstered energy sector stocks. The movement comes amid reports of Israel launching airstrikes against Iran, which sent crude oil prices soaring over 10%.

The jump in oil prices, with U.S. West Texas Intermediate rising 12% to $76.5 per barrel and global benchmark Brent surging 11.82% to $77.56 per barrel, provided a significant tailwind for major oil producers like Occidental. As a company with substantial drilling operations, Occidental stands to benefit disproportionately from higher oil prices, which could substantially boost its operating cash flow.

Adding to the bullish sentiment is Warren Buffett's continued confidence in Occidental. Berkshire Hathaway, Buffett's investment vehicle, has invested $35 million in Occidental stock this year at $46.82 per share, bringing its total investment over the past three years to $6.9 billion. This ongoing support from one of the world's most renowned investors has likely contributed to positive market sentiment towards Occidental.

Investors are also encouraged by Occidental's strong financial performance and strategic moves to improve its balance sheet. The company generated $2.1 billion in cash flow in the first quarter of this year and has been actively selling assets and repaying debt. In Q1, Occidental sold $1.3 billion worth of assets and repaid $2.3 billion in debt, demonstrating its commitment to financial stability and operational efficiency.