USO, XOM, COP, CVX, VG Rise: Oil Prices Spike Amid Renewed Iran Tensions, China Commitment

• The comments come shortly after the president’s visit to China, a country with close ties to Tehran, as investors were hopeful for a significant breakthrough in the Middle East.
• Brent crude futures were up about 1.81%, while WTI crude futures were 2.18% higher at the time of writing.
• United States Oil Fund rose 2%, Exxon Mobil climbed 0.7%, Conoco Phillips gained 0.9%, Chevron was up 0.45%, and Venture Global climbed more than 1% at the time of writing.

Shares of major oil stocks and index funds jumped in the overnight trading session headed into Monday after oil prices spiked on U.S. President Donald Trump’s comment that time was running out for Iran.

American oil companies also got a sentiment boost after Trump said last week that China had agreed to buy crude oil from the U.S. following the recently-concluded bilateral summit in Beijing.

Shares of the United States Oil Fund (USO) rose 2%, while Exxon Mobil Corp. (XOM) climbed 0.7%, Conoco Phillips (COP) gained 0.9%, Chevron Corp. (CVX) was up 0.45%, and Venture Global Inc. (VG) was up more than 1% at the time of writing.

Oil Above $100 Amid Rising Tensions In The Middle East

Oil prices surged after Trump said in a post on Truth Social on Sunday, "For Iran, the Clock is Ticking, and they better get moving, FAST, or there won't be anything left of them. TIME IS OF THE ESSENCE!" The comments come shortly after the president’s visit to China, a country with close ties to Tehran. Investors were hoping for a significant breakthrough after the visit.

Brent crude futures expiring in July were up about 1.81%, trading at around $111.30 a barrel, while WTI crude futures expiring in June were 2.18% higher, at $107.72 a barrel at the time of writing.

The conflict between the U.S. and Iran has stayed high despite a ceasefire announced in early April. The U.S. has continued to blockade Iranian ports, even as the critical Strait of Hormuz has stayed shut since the conflict began. Meanwhile, reports have said that Iran has called the U.S. blockade an “act of war,” threatening further damage to countries around the world if the blockade continued.  

Mohsen Rezaei, a member of Tehran’s Expediency Council and former IRGC commander, has reportedly said that the Iranian military is ready for further confrontation. “We advise the US military to end the siege before the Sea of Oman becomes your graveyard,” Rezaei reportedly said.

“It is America that must prove itself now,” he said. “Our armed forces have their finger on the trigger, and, at the same time, diplomacy continues.”

China To Buy US Oil

Meanwhile, China agreed to buy crude oil from the U.S. last week. “They have an insatiable appetite for energy, and we have unlimited energy,” Trump said in an interview with Fox News, adding that “we’re doing twice as much oil and gas, as they are,” referring to the U.S. producing more oil and gas than Saudi Arabia and Russia combined.

How Do Retail Traders Feel About Energy Stocks?

On Stocktwits, retail sentiment on USO was in the ‘neutral’ territory amid ‘low’ message volumes. Meanwhile, sentiment for XOM and CVX was in the ‘bearish’ territory. Sentiment on COP and VG was in the green at the time of writing amid ‘high’ and ‘extremely high’ message volumes, respectively.

So far this year, USO has led with gains of nearly 115%, followed by VG, which rose about 102%. COP, XOM, and CVX have advanced 26.6%, 28.8%, and 22.6% respectively.

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