What Happened?
A number of stocks jumped in the afternoon session after oil and gas prices surged amid reports the U.S. was planning an extended blockade of Iranian ports.
Brent crude, a key international oil benchmark, rose 5% to nearly $117 a barrel, its highest level since the conflict with Iran began.
The price increase raised concerns that the situation, could persist for much longer, creating broad uncertainty in the energy markets. For oil and gas producers, higher commodity prices generally translate to increased revenues and profitability, which often makes their stock more attractive to investors. Adding to the volatility, the United Arab Emirates announced its departure from the OPEC oil cartel, introducing a new layer of uncertainty for global supply. This combination of geopolitical risk and rising commodity prices contributed to the broad market decline as investors grew more cautious.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Mixed or Offshore Upstream E&P company APA Corporation (NASDAQ: APA) jumped 3%. Is now the time to buy APA Corporation? Access our full analysis report here, it’s free.
- Diversified Upstream E&P company Occidental Petroleum (NYSE: OXY) jumped 2.8%. Is now the time to buy Occidental Petroleum? Access our full analysis report here, it’s free.
Zooming In On APA Corporation (APA)
APA Corporation’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock dropped 2.9% on the news that a drop in crude oil prices weighed on the energy sector.
WTI crude oil futures slipped to $94.8 per barrel, snapping a four-session winning streak. The decline in oil prices came amid hopes of diplomatic progress between the US and Iran, which eased concerns about potential supply disruptions. As an oil and gas exploration and production company, APA Corporation's financial performance is closely linked to energy prices. Therefore, a fall in crude oil prices typically puts pressure on the company's stock as it can lead to lower revenues and profits.
APA Corporation is up 58.6% since the beginning of the year, but at $40.23 per share, it is still trading 9.4% below its 52-week high of $44.39 from March 2026. Investors who bought $1,000 worth of APA Corporation’s shares 5 years ago would now be looking at an investment worth $1,945.
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