In this article, we will discuss the 10 Best Oil Stocks to Buy Now on Any Outcome of the US-Iran War.

The largest oil disruption in history has jolted the energy industry from a yearlong slumber. The US-Iran war triggered a spike in oil prices to about $120 a barrel. While prices have pulled back, they remain elevated, supported above $90 a barrel, as the Middle East conflict shows no signs of ending.

With oil prices above $100 a barrel, it is a booming business for oil and gas companies, a development that has transformed the industry into one of the market’s only havens. Oil stocks have outperformed the overall market, posting double-digit gains, while the S&P 500 gained 8% over the same period.

The significant gains among oil stocks mark a U-turn from just a few months ago, when analysts expected the stocks to remain under pressure amid a supply glut, pushing oil prices below $50 a barrel. While the S&P 500 energy sector has posted negative returns in four of the last 10 calendar years, the outlook is slowly improving.

“The investment thesis gets stronger as [the war] goes along,” said Dan Pickering, founder of Pickering Energy Partners, a financial firm. “If the U.S. just leaves, Iran is in charge of the strait. They can turn it off whenever they want.”

The rush for conventional energy stocks extends past Iran’s effective blockade of the Strait of Hormuz. Significant withdrawals from strategic reserves in the U.S. and elsewhere have affirmed the long-term outlook, as the reserves must be replenished.

With no end in sight and the Strait of Hormuz technically closed, oil supplies will remain curtailed, something that should continue to support higher prices. Even if the war were to end soon, the long-term implications would remain. According to Amin Nasser, the CEO of Saudi Aramco, the conflict has already cost the world around 1 billion barrels of oil, and the market might not return to normalcy until 2027.

“Even when the war finally ends, the damage to the energy infrastructure may take several years to fix, thus impacting supply for a long time to come. The current state of things has increased the volatility, which can be a good opportunity for those investors seeking outsized gains,” Angelo DeCandia, professor of business at Touro University.

Our Methodology

To compile the list of the best oil stocks to buy now on any outcome of the US-Iran War, we used Finviz and Yahoo Finance Screener to scan for companies engaged in oil exploration, drilling, refining, and distribution. From the list, we settled on stocks that have outperformed amid the US-Iran war, with year-to-date gains of more than 10% (as of May 24). We further trimmed the list by concentrating on stocks with an upside potential of more than 10%. We also detailed the number of hedge funds that hold stakes in them in Q1 2026. Finally, we ranked the stocks in ascending order based on their upside potential.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

Best Oil Stocks to Buy Now Amid the US-Iran Conflict

10. Borr Drilling Limited (NYSE:BORR)

Stock Upside Potential: 11.71%

Year to Date Gain: 38.35%

Number of Hedge Fund Holders: 28

Borr Drilling Limited (NYSE:BORR) is one of the best oil stocks to buy now amid the US-Iran Conflict. On May 20, Borr Drilling Limited (NYSE:BORR) acknowledged that it is feeling the impact of the Middle East conflict, which has created near-term uncertainty. However, key tenders in the region continue to progress, though with modest delays.

Similarly, the management team insists that the recent events have strengthened the sector’s longer-term outlook, given higher oil prices and renewed focus on energy security. In addition, shallow-water basins are increasingly attractive, offering low-cost, short-cycle barrels. Consequently, the company’s expanded drilling fleet is well poised to support customer demand and deliver long-term shareholder value.

The sentiments come on the backdrop of disappointing first-quarter results, in which revenue was down 5% sequentially to $247 million. The decline was due to a $15.5 million decrease in dayrate revenue, offset by a $3 million increase in bareboard charter revenue. The company also posted a net loss of $29 million compared to a net loss of $1 million in the fourth quarter.

Borr Drilling Limited (NYSE:BORR) is an international offshore drilling contractor that provides shallow-water drilling services to the global oil and gas industry. The company owns and operates a modern fleet of specialized jack-up rigs designed to perform exploration, production, and well-maintenance in water depths of up to 400 feet.

9. Delek US Holdings, Inc. (NYSE:DK)

Stock Upside Potential: 12.18%

Year to Date Gain: 46.68%

Number of Hedge Fund Holders: 46

Delek US Holdings Inc. (NYSE:DK) is one of the best oil stocks to buy now amid the US-Iran Conflict. On April 29, Delek US Holdings Inc. (NYSE:DK) reiterated its strong start to the year, noting that it is enhancing its cash flow profile through the disciplined execution of the Enterprise Optimization Plan and other value-creating initiatives.

During the first quarter, the company successfully completed its Big Spring refinery turnaround, executed on time and on budget. The ramp-up of the Delaware basin Libby 2 Plant, which continues to expand the company’s comprehensive sour gas capabilities, continues to assert the company’s competitive position and support the 2026 outlook.

The company delivered adjusted net income of $4.7 million, or $0.08 per share, and adjusted EBITDA of $ 211.7 million. Revenue in the quarter was $2.65 billion, better than the $2.42 billion expected. It also exited the quarter with a cash balance of $624.1 million and total long-term debt of $3.18 billion.

Delek US Holdings, Inc. (NYSE:DK) is a diversified downstream energy company that operates in petroleum refining, logistics, asphalt production, and renewable fuels. It primarily processes crude oil into marketable products like gasoline, diesel, and jet fuel across the South-Central United States.