Major oil companies witnessed a decline in their stock prices following Israel’s military action against Iran over the weekend. The market reaction reflects investor concerns about potential geopolitical instability impacting the oil sector.
What Happened: According to Benzinga Pro, several leading oil firms saw their stock values decrease on Monday during pre-market hours. Exxon Mobil Corp. XOM experienced a 2.08% drop in pre-market trading. Similarly, Warren Buffett’s Berkshire Hathaway-backed Occidental Petroleum Corp OXY faced a 2.37% decline in its share price.
Chevron Corp CVX was also affected, with its stock falling by 1.94%. Meanwhile, Shell SHEL saw a 2.36% decrease in trading value. These stock movements followed Israel’s “limited” strikes on Iran, as reported by local media.
Analysts have suggested that the impact on oil supplies may not be as severe as initially feared. However, the market’s response indicates ongoing concerns about geopolitical tensions affecting the oil industry.
Why It Matters: The recent military strikes by Israel targeted Iranian sites in three provinces, following a ballistic missile attack by Tehran on Oct. 1. According to the Iranian news agency Tasnim, the strikes resulted in the deaths of four soldiers and caused “limited damages,” sparing oil, nuclear, and civilian infrastructure.
Oil-based exchange-traded funds (ETFs) also experienced a significant decline, dropping over 4%. The sharp decline in oil prices, exceeding 4% on Monday, underscores the market’s sensitivity to geopolitical developments.
Read Next:
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Image via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
