Exxon Mobil Corp XOM shares are trading higher by 3.46% to $110.88 Monday afternoon. Shares of energy stocks are trading higher as the Israel-Hamas conflict drives oil supply uncertainty.
Investors are watching events closely as rocket attacks by Hamas, the Palestinian militant organization in control of the Gaza Strip, have resulted in casualties exceeding 1,100 people, including 700 Israelis, with over 2,000 injuries and numerous individuals held captive in Gaza.
Israel’s military also called in 300,000 reserve forces Monday in order to facilitate a siege on the Gaza Strip and halt the transport of supplies, including food and fuel.
See Also: What Israel's War With Hamas Means For Gold And Other Safe Haven Assets
The conflict in the Middle East, particularly in areas like Israel and the Gaza Strip, can disrupt the flow of oil in the region. The Middle East is a major oil-producing region, and any instability or supply disruptions can lead to concerns about oil availability.
Exxon Mobil, being an energy company, benefits from rising oil prices and supply disruptions because it can potentially sell its oil and gas products at higher prices.
In general, geopolitical tensions and conflicts in oil-producing regions often lead to an increase in oil prices. This is due to concerns about potential supply disruptions, which can reduce the global oil supply.
Higher oil prices can directly benefit Exxon Mobil's profitability because it can sell its oil at higher market prices, leading to increased revenues and potentially higher stock prices.
See Also: Goldman Sachs Bullish On Crude Oil With Israel, Hamas At War
According to data from Benzinga Pro, Exxon Mobil has a 52-week high of $120.70 and a 52-week low of $96.75.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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