Woodside Energy Group Ltd (WDS.AU) saw its shares soar 5.33% in Friday's pre-market trading session, as escalating tensions in the Middle East sparked a surge in global oil prices. The Australian oil and gas giant's stock climb comes in the wake of Israel's strike on Iran, which has heightened geopolitical risks and raised concerns about potential disruptions to oil supply.

The geopolitical turmoil has sent shockwaves through the energy markets, with front-month West Texas Intermediate (WTI) crude oil futures jumping 5.3% to $71.64 per barrel, while Brent crude oil futures rose 4.9% to $72.76 per barrel. This sharp increase in oil prices has directly benefited major Australian energy producers, with Woodside Energy leading the pack.

While Woodside Energy and its peers in the oil and gas sector are experiencing significant gains, the broader Australian market is showing a different trend. The S&P/ASX 200 index is down 0.2%, indicating a clear rotation of investor funds out of equities and into energy stocks, which are perceived as safer bets during times of geopolitical uncertainty. This divergence highlights the energy sector's potential as a hedge against broader market volatility in the current climate.