Chevron Stock Rises as Oil Prices Surge on US-Iran Tensions

Chevron shares gain as energy sector sentiment improves amid disruptions in the Strait of Hormuz shipping lane

Apr. 20, 2026 at 10:35am

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Chevron's stock price rose in premarket trading on Monday as oil prices surged following renewed tensions between the US and Iran that disrupted shipping through the Strait of Hormuz. The energy sector was one of the few bright spots in early market trading, with Chevron's stock up 1.36% to $186.50 per share. The jump in oil prices came after Iran declared the key shipping lane reopened, only for vessel traffic to be restricted again shortly after, leading to a 5.72% increase in West Texas Intermediate crude and a 4.70% rise in Brent crude.

Why it matters

The Strait of Hormuz is a critical global chokepoint for oil shipments, so any disruptions there can have a significant impact on energy prices and the broader energy sector. Chevron's heavy exposure to the region through its operations in Venezuela and the Middle East means it is particularly sensitive to geopolitical tensions in the area. The company's stock performance is closely tied to oil price movements, so the latest surge in crude prices is a positive for Chevron.

The details

Over the weekend, Iran had declared the Strait of Hormuz reopened, but by Saturday, vessel traffic through the key shipping lane was restricted again, with state media saying the U.S. "did not fulfill their obligations." This led to a sharp increase in oil prices, with West Texas Intermediate (WTI) crude oil price surging 5.72% to $88.65 and Brent crude oil price increasing 4.70% to $94.63. The energy sector was one of the few bright spots in early market trading, with the Energy Select Sector SPDR ETF (XLE) up 1.49%. Chevron also announced last week that it had agreed to an asset swap with Petroleos de Venezuela (PDVSA) to strengthen its heavy oil position in Venezuela.

  • Over the weekend, Iran had declared the Strait of Hormuz reopened.
  • By Saturday, vessel traffic through the key shipping lane was restricted again.

The players

Chevron

An American multinational energy corporation that is one of the largest oil companies in the world.

Iran

A Middle Eastern country that has been in conflict with the United States over its nuclear program and regional influence.

Petroleos de Venezuela (PDVSA)

The state-owned oil and natural gas company of Venezuela.

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What they’re saying

“Trump warned Sunday he would "knock out every single Power Plant, and every single Bridge, in Iran" if Tehran did not agree to Washington's terms to end the conflict, with the fragile ceasefire set to expire this week.”

— Donald Trump, Former U.S. President

What’s next

Chevron is set to report its earnings on May 1, 2026, with analysts expecting earnings per share of $1.40 and revenue of $51.29 billion. The company's stock carries a Buy rating with an average price target of $196.27, and recent analyst actions include upgrades and target price increases.

The takeaway

The surge in oil prices driven by the latest tensions between the US and Iran highlights Chevron's sensitivity to geopolitical events in the Middle East and its reliance on stable energy markets. While the company's stock is performing well in the short term, its long-term outlook will depend on its ability to navigate these volatile conditions and continue growing its operations in key regions like Venezuela.