Oil Stocks Rally as Geopolitical Tensions Spike Crude Prices

Brent crude surged 6.2% to $96.77 and WTI jumped 7% to $93.48 after Iran suspended nuclear negotiations, citing Israeli military actions in Lebanon. The geopolitical shockwave propelled energy equities, with ExxonMobil (XOM) snapping a seven-day losing streak with a 2.9% gain to $149.41.

BP led majors with a 3.5% rally, while Chevron and Shell both posted gains exceeding 2%. The XLE energy ETF climbed 2.3%, mirroring the sector-wide momentum. Exxon's Q1 earnings beat of $1.16/share versus $0.98 estimates provided fundamental support despite analyst consensus maintaining a "Hold" rating with $165.55 price target.

Market dynamics reversed abruptly from last week's downturn, when traders had priced in optimism about potential U.S.-Iran negotiations. The swift repricing underscores oil markets' sensitivity to Middle East supply disruptions.