In this article, we will discuss the 10 Best Oil Stocks to Buy Now Amid the US-Iran Conflict.
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 amid the US-Iran conflict, 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 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 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. 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. 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.
8. Chevron Corporation (NYSE:CVX)
Stock Upside Potential: 13.46%
Year to Date Gain: 22.79%
Number of Hedge Fund Holders: 103
Chevron Corporation (NYSE:CVX) is one of the best oil stocks to buy now amid the US-Iran Conflict. On May 21, Chevron U.S.A. Inc., a subsidiary of Chevron Corporation, introduced a reformulated version of its Techron gasoline additive, designed to protect engines from deposits caused by lower‑quality fuels.
The updated Techron formulation is now available across all fuel grades at Chevron and Texaco stations in the U.S. The company claims the additive can clean up to 100% of harmful deposits when used consistently, based on industry‑standard GDI injector testing.
Chevron emphasized that the new formulation builds on its long‑standing reputation for clean engines and reliable performance. Andy Walz, president of Chevron Downstream, Midstream, and Chemicals, noted that the innovation reflects the company’s ongoing commitment to science‑based fuel technology.
The additive was tested extensively through laboratory studies, engine trials, and benchmarking against competitors. Chevron highlighted that Techron’s reformulation underscores its investment in fuel quality and technology, aligning with its broader role as an integrated energy company producing oil, gas, fuels, lubricants, and petrochemicals.
Chevron Corporation is a major integrated energy company. It explores for, produces, and refines crude oil and natural gas. It also transports these resources by pipeline and tanker, manufactures fuels and lubricants, and invests in lower-carbon energy technologies such as renewables and carbon capture.
7. Diamondback Energy Inc. (NASDAQ:FANG)
Stock Upside Potential: 14.22%
Year to Date Gain: 31.75%
Number of Hedge Fund Holders: 52
Diamondback Energy Inc. (NASDAQ:FANG) is one of the best oil stocks to buy now amid the US-Iran Conflict. On May 20, analysts at Citi reiterated their Buy rating on Diamondback Energy Inc. and raised their price target to $245 from $225.
The upgrade comes after Diamondback Energy rallied by more than 30% year to date. According to the research firm, there is still a disconnect between oil-levered companies and medium-term crude prices. This disconnect presents a significant opportunity.
Earlier in the month, Diamondback Energy bought options to sell the price difference between U.S. West Texas Intermediate crude and globally traded Brent crude at around minus $42 a barrel. By purchasing options worth about $70 million, the company is essentially limiting the risk of falling oil prices and securing future revenues.
In the first quarter, Diamondback Energy generated $4.2 billion in revenue and a net gain of $117 million related to its derivatives positions.
Diamondback Energy Inc. is an independent American oil and natural gas company. It focuses on the exploration, acquisition, development, and production of unconventional onshore oil and gas reserves, operating exclusively in the Permian Basin in West Texas.
6. Exxon Mobil Corporation (NYSE:XOM)
Stock Upside Potential: 16.29%
Year to Date Gain: 26.31%
Number of Hedge Fund Holders: 94
Exxon Mobil Corporation (NYSE:XOM) is one of the best oil stocks to buy now amid the US-Iran Conflict. On May 21, Weatherford International announced it had secured a deepwater completions contract from Exxon Mobil Corporation’s affiliate Esso Exploration & Production Nigeria Ltd. for offshore Nigeria operations.
The deal covers integrated upper and lower completions solutions aimed at enhancing safety, reliability, and efficiency across the well lifecycle. Weatherford will configure equipment through its global supply chain while supporting execution locally in Nigeria, underscoring ExxonMobil’s continued investment in complex deepwater projects.
On May 1, Exxon Mobil Corporation delivered first-quarter results that affirmed it is a fundamentally strong company capable of performing through disruption and across market cycles. Consequently, Wall Street firms led by TD Cowen and RBC Capital reiterated their positive ratings on the stock.
Earnings excluding identified items and estimated timing effects totaled $8.8 billion compared to $7.6 billion delivered in the same quarter last year. ExxonMobil generated earnings per share of $1, or $1.16 excluding identified items. Cash flow from operations totaled $8.7 billion, or $13.8 billion excluding margin postings, which primarily fluctuate with the fair value of underlying derivatives.
On May 8, TD Cowen reaffirmed its Buy rating on ExxonMobil and set a price target of $172, insisting that the first-quarter results highlighted the company’s Middle East exposure. Separately on May 5, RBC Capital reaffirmed a Sector Perform rating on ExxonMobil with a $180 price target, noting the company is well-positioned to benefit from stronger commodity prices in the current conflict‑driven environment.
Exxon Mobil Corporation is a multinational energy and chemical corporation. It explores for and produces crude oil and natural gas, manufactures petroleum products and petrochemicals, and develops lower-emission technologies. The company serves global energy markets and operates through major brand names, including Exxon, Esso, and Mobil.
5. Energy Transfer LP (NYSE:ET)
Stock Upside Potential: 17.09%
Year to Date Gain: 20.98%
Number of Hedge Fund Holders: 34
Energy Transfer LP Unit (NYSE:ET) is one of the best oil stocks to buy now amid the US-Iran Conflict. On May 12, analysts at Scotiabank reiterated an Outperform rating on Energy Transfer LP Unit and raised the price target to $24 from $22.
The bullish stance and price target hike are in response to first-quarter reports that showed midstream names’ capacity and their ability to capture outsized earnings during the period of turbulence. The company delivered net income attributable to shareholders of $1.25 billion with net income per common unit of $0.35. Adjusted EBITDA increased 20% to $4.94 billion.
rob3rt82/shutterstock.com
Energy Transfer LP Unit’s edge as a midstream energy company stems from its diversified asset portfolio. Its multiple segments generated high-quality, balanced earnings with no single business accounting for more than one-third of adjusted EBITDA. The company expects adjusted EBITDA for the full year of 2026 to range between $18.2 billion and $18.6 billion, up from the previous range of $17.45 billion to $17.85 billion.
Energy Transfer LP operates as a “midstream” energy company, meaning it does not drill for oil or refine it for consumer use. Instead, it serves as the logistical backbone of the energy industry, transporting, storing, and terminalling crude oil, natural gas, and natural gas liquids (NGLs) across the United States.
4. ConocoPhillips (NYSE:COP)
Stock Upside Potential: 18.16%
Year to Date Gain: 24.57%
Number of Hedge Fund Holders: 74
ConocoPhillips (NYSE:COP) is one of the best oil stocks to buy now amid the US-Iran Conflict. On May 1, analysts at Truist Securities increased their price target of ConocoPhillips to $128 from $127 and reiterated a Hold rating. The analyst views the stock positively, citing its deep resource base and exposure to both short‑ and long‑cycle opportunities, along with a strong LNG portfolio that enhances growth prospects.
The price target hike comes on the heels of the company delivering solid first-quarter financial results that came above estimates. Amid the ongoing conflict in the Middle East, ConocoPhillips delivered another quarter of strong financial and operational performance. Adjusted earnings in the quarter totaled $2.3 billion or $1.89 a share on the production of 2,309 thousand barrels of oil equivalent per day (MBOED).
During the quarter, the company asserted its commitment to shareholder value by distributing $2 billion, comprising $1 billion in buybacks and $1 billion in ordinary dividends. The company has also approved a $0.84 ordinary dividend to be paid on June 12026. For the second quarter, the company is on track to produce 2.185 to 2.215 million barrels of oil equivalent per day (MMBOED).
ConocoPhillips is one of the world’s largest independent exploration and production (E&P) companies. It operates globally to find, extract, transport, and market crude oil, natural gas, liquefied natural gas (LNG), and natural gas liquids.
3. SLB N.V. (NYSE:SLB)
Stock Upside Potential: 20.94%
Year to Date Gain: 42.49%
Number of Hedge Fund Holders: 74
SLB N.V. (NYSE:SLB) is one of the best oil stocks to buy now amid the US-Iran Conflict. On May 11, analysts at Bernstein SocGen Group reiterated an Outperform rating on SLB N.V. and raised the price target to $71 from $56.10.
The price target hike comes amid expectations that the company is well-positioned to achieve long-term growth of 3.5%, up from the previously expected 2%. Bernstein SocGen expects the company to achieve higher growth rates owing to SLB’s strong record of high research and development spending, which drives high profit margins.
SLB’s steady investment in research and development—including during downturns—has contributed to higher profits and enabled the company to scale new technologies, as shown by growth in its data center business over the past two years.
The company successfully navigated the first quarter despite the Middle East conflict affecting its operations. It achieved a 3% year-over-year increase in revenue, totaling $8.72 billion. However, net income attributed to shareholders fell 6% to $752 million.
SLB N.V. (formerly Schlumberger) is an oilfield services and technology company. It provides equipment, software, and services to the global energy industry—primarily focusing on drilling, reservoir performance, production systems, and carbon capture technologies.
2. Shell plc (NYSE:SHEL)
Stock Upside Potential: 24.61%
Year to Date Gain: 13.61%
Number of Hedge Fund Holders: 45
Shell PLC (NYSE:SHEL) is one of the best oil stocks to buy now amid the US-Iran Conflict. On May 20, QatarEnergy acquired stakes in three offshore exploration blocks in Uruguay from a Shell PLC subsidiary, marking its first entry into the country’s upstream sector. Shell remains a key operator, holding majority interests in blocks OFF‑2 and OFF‑7, and a significant stake in block OFF‑4. The deal reinforces Shell’s role as a strategic partner for QatarEnergy in South America, expanding collaboration beyond existing projects in Qatar and other regions.
On May 18, analysts at HSBC upgraded Shell PLC to a Buy from a Hold, impressed by improved cash generation and stronger-than-expected earnings momentum.
The research firm expects Shell PLC to deliver improved medium-term production as it capitalizes on its recent acquisition of ARC Resources. The acquisition is poised to add about 370,000 barrels of oil per day of production and 2 billion barrels of proved and probable reserves. Enhanced production is expected to lift the company’s growth rate to around 4% annually through 2030.
While Shell PLC did trim its quarterly share buyback to $3 billion from $3.5 billion. It is poised to redirect the $500 million balance towards the balance sheet and partly offset an unexpected 5% increase in the dividend. HSBC expects the buyback to revert to $3.5 billion in the first quarter of 2027.
Shell PLC is a global integrated energy company that operates across the entire oil and gas value chain, from finding and extracting crude oil to refining it into everyday products and distributing them to consumers.
1. Devon Energy Corporation (NYSE:DVN)
Stock Upside Potential: 28.59%
Year to Date Gain: 24.69%
Number of Hedge Fund Holders: 58
Devon Energy Corporation (NYSE:DVN) is one of the best oil stocks to buy now amid the US-Iran Conflict. On May 21, Devon Energy Corporation completed the acquisition of 16,300 net undeveloped acres through a U.S. government federal lease sale in the core of the Delaware Basin in Lea and Eddy Counties.
The $2.6 billion sale is poised to bolster the company’s Delaware Basin positions and further extend inventory life. Devon Energy Corporation is to fund the acquisition with cash on hand while maintaining a strong credit profile.
The deal will add 400 net locations, normalized to 2-mile laterals, with strong well economics expected. The new position will also result in high net revenue interest, given that Federal leases carry 87.5% net revenue interest with 19-year terms across all depths.
The acquisition comes on the heels of the company announcing a series of capital return actions following the completion of all stock mergers with Coterra Energy. The board has already approved an $8 billion share repurchase representing 15% of the current market capitalization. It has also approved a $ 0.320-per-share dividend, a 33% quarter-over-quarter increase.
Devon Energy Corporation is an independent oil and gas company that explores for, develops, and produces crude oil, natural gas, and natural gas liquids. Operating entirely within the United States, its primary assets are concentrated in major resource basins, with a significant footprint in the prolific Delaware Basin.
READ NEXT: 15 Best Micro and Small Cap Stocks to Buy According to Jim Simons’ Renaissance Technologies and 7 Best Small Cap Agriculture Stocks to Buy Now.
Hedge Fund Resource Center