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.
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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.
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 (NYSE: CVX), 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 (NYSE:CVX) 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. (NASDAQ:FANG) 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. (NASDAQ:FANG) 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 (NYSE:XOM)’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 (NYSE:XOM) 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.
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