Occidental Petroleum shares surged 5.01% during intraday trading on Monday, leading a broad rally in the energy sector as crude prices spiked on heightened geopolitical uncertainty.

The surge was driven by a confluence of factors. Oil prices jumped over 3% after Iran insisted the United States must meet certain demands before the Strait of Hormuz can reopen, casting doubt on a potential US-Iran agreement. West Texas Intermediate crude settled above $80 per barrel, lifting energy stocks across the board. Occidental was specifically cited among the top gainers in the S&P 500 energy index, which rose 3.3%.

Additionally, the stock continues to benefit from a blowout second-quarter earnings report, where revenue of $8.32 billion and adjusted EPS of $2.40 both significantly exceeded consensus estimates. Bolstering investor confidence further, Truist Securities raised its target price on Occidental to $63 from $57, reflecting optimism over the company's production guidance and improved free cash flow outlook.