Exxon Mobil (XOM) Stock On Watch Amid Middle East Tensions: What's Going On?

Exxon Mobil Corp XOM shares are on watch Monday morning as escalating geopolitical tensions in the Middle East are raising fears of oil supply disruptions.

What To Know: This follows the U.S. State Department's worldwide security alert after American airstrikes on Iranian nuclear sites and Iran's subsequent threats against U.S. interests.

Markets reacted to the possibility of supply shocks after Iran's parliament authorized potential closure of the Strait of Hormuz, a strategic chokepoint through which nearly 20% of the world's petroleum passes. While the vote was symbolic, it underscored the region's volatility and heightened the risk premium on crude.

Exxon Mobil, one of the world's largest publicly traded oil and gas companies, stands to benefit from rising oil prices in the face of constrained global supply.

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As a vertically integrated energy giant with upstream and downstream operations, XOM's profitability is closely tied to crude oil prices, which are sensitive to geopolitical instability in major production and transport regions like the Middle East.

With Iranian airspace closures, restricted travel and increasing regional conflict, investors are likely rotating into energy stocks Monday as a hedge, lifting shares of oil majors like Exxon Mobil.

The firm's global scale and upstream exposure could position it well amid rising energy demand and tightening supply concerns.

According to data from Benzinga Pro, XOM has a 52-week high of $126.34 and a 52-week low of $97.80.

Read Also: Indonesia Energy (INDO) Stock Soars Amid Middle East Tensions, Oil Disruption Fears

How To Buy XOM Stock

By now you're likely curious about how to participate in the market for Exxon Mobil – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Exxon Mobil, which is trading at $114.52 as of publishing time, $100 would buy you 0.87 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

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