Shares of oil and gas-related companies are trading higher as oil prices rise amid growing expectations that the U.S. could resume strikes on Iran in the coming weeks. Reports of U.S. and Israeli plans for renewed strikes following next month’s midterm elections, coupled with Iran’s military warning that it is prepared for “asymmetric warfare,” are fueling concerns over prolonged supply disruptions and potentially sustaining higher energy prices, which could benefit the sector.

Key takeaways

• Energy stocks are rising as oil prices climb amid expectations of renewed U.S. strikes on Iran.

What happened

Oil prices have climbed, lifting shares of oil and gas companies as analysts expect the U.S. may launch new strikes against Iran soon.

Why it matters

Higher oil prices can boost earnings for energy firms and keep their stocks attractive, while the possibility of supply disruptions adds a risk premium to the sector.

Short-term and longer-term

Short-term. In the next few days, watch for any official confirmation of U.S.

Longer-term. Over the coming months, the sector’s performance will hinge on whether supply disruptions materialize.