By Alex Kozul-Wright

Oil-and-gas company stocks gained early Monday amid escalating tensions in the Middle East and as investors positioned themselves for the possibility of extended supply disruptions.

Oil exploration and production companies Exxon, Chevron, and Occidental Petroleum were all up in premarket trading -- by 0.7%, 0.7%, and 1.2%, respectively.

Natural gas companies had a similarly strong start to the week. New Fortress Energy was up 12% ahead of the bell, while Cheniere Energy shares increased by 3.3%.

The reasons are first that over the weekend, Israel struck several fuel-storage facilities in Tehran, while Iranian drones struck an oil refinery in Bahrain, The Wall Street Journal reported.

Secondly, the U.A.E. and Kuwait signaled a drop in oil production Saturday after Iraq slashed output earlier in the week. And third while, the Strait of Hormuz remains effectively closed, there are no signs of the conflict ending soon.

In a social media post Sunday President Donald Trump said the curent oil prices were "a very small price to pay," for a safer world which suggests the spike in crude has not deterred him.

Continuous crude futures for West Texas Intermediate rallied 12.5% early Monday, to $102.41 a barrel. Elsewhere, U.S. natural gas futures rose by 4% to $3.31 per million British thermal units.

"Many asset classes are now tracking oil almost tick for tick, so for markets, this is what matters above all else right now," said Deutsche Bank strategist Jim Reid in a note.

Write to Alex Kozul-Wright at alexander.kozul-wright@barrons.com

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March 09, 2026 07:36 ET (11:36 GMT)

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