Oil Prices Jump after Iran Claims Control of Strait of Hormuz — 3 Top Energy Stocks to Watch Now

Oil prices moved higher after Iran’s Revolutionary Guard said it has taken control of the Strait of Hormuz and warned ships not to pass through the route. The development raised new concerns about global oil supply and increased fears of a wider conflict in the Middle East.

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Following the development, Brent crude prices extended a four-day rally, rising 2.65% to $83.60 per barrel on Wednesday, hovering near the highest level since January 2025. U.S. West Texas Intermediate (WTI) crude also climbed for a third straight session to $76.45. The rise in prices is putting major oil producers such as Devon Energy (DVN), SLB (SLB) and Diamondback Energy (FANG) in focus.

Why the Strait of Hormuz Matters

Iran lies next to the Strait of Hormuz, a narrow waterway that carries a large share of the world’s oil shipments. The route handles a significant portion of global crude exports, making it one of the most important chokepoints in the energy market.

Because so much oil passes through this corridor, any threat to tanker traffic can quickly push prices higher. Analysts said that if tanker traffic remains limited, oil prices could stay elevated in the near term. As a result, we identified two “Strong Buy” energy companies using the TipRanks database that could benefit from the rise in oil prices.

Let’s take a closer look.

Devon Energy (DVN)

Devon Energy is a U.S.-based oil and gas producer focused mainly on shale drilling across key basins such as the Delaware Basin, Eagle Ford, and Williston Basin. Because it operates as a pure exploration and production company, its earnings tend to move closely with changes in crude oil prices.

Turning to the financials, Devon reported $4.12 billion in revenue in the fourth quarter of 2025, slightly below the prior year but about $510 million above estimates. The company posted non-GAAP earnings of $0.82 per share, while operating cash flow reached $1.5 billion and free cash flow came in at $702 million.

With a low breakeven cost of about $45 per barrel, Devon can benefit strongly when oil prices rise. Higher crude prices can quickly lift its cash flow and returns, which is why investors often watch the stock when the energy market turns higher.

Turning to Wall Street, analysts have a Strong Buy consensus rating on DVN stock based on 16 Buys and two Holds assigned in the past three months, as indicated by the graphic below. The average DVN stock price target of $47.71 indicates 8.43% upside potential. At a quarterly dividend of $0.24 per share, DVN stock offers a yield of 2.64%.

SLB (SLB)

SLB, formerly known as Schlumberger, is one of the world’s largest oilfield services companies. Unlike oil producers, the company provides technology and services that help energy firms drill wells, manage reservoirs, and improve production.

Turning to the financials, SLB reported $9.75 billion in revenue in the fourth quarter of 2025, up about 5% year over year and above market estimates. The company posted adjusted earnings of $0.78 per share, beating expectations of $0.74, while net income reached about $824 million for the quarter.

Because SLB earns revenue from services used in drilling and production, higher oil prices can encourage energy companies to increase exploration and development spending, which in turn supports demand for its technology and services.

Turning to Wall Street, analysts have a Strong Buy consensus rating on SLB stock based on 16 unanimous Buys in the past three months, as indicated by the graphic below. The average SLB stock price target of $53.58 indicates 10.29% upside potential. At a quarterly dividend of $0.285 per share, SLB stock offers a yield of 2.98%.

Diamondback Energy (FANG)

Diamondback Energy is a Texas-based oil and gas producer focused on the Permian Basin, one of the most productive shale regions in the United States. Because it operates mainly as an exploration and production company, its results tend to move closely with changes in crude oil prices.

Turning to the financials, Diamondback reported $3.38 billion in revenue for Q4 2025, down about 9% year-over-year but more than $130 million above estimates. The company posted non-GAAP earnings of $1.74 per share, while adjusted free cash flow reached about $1.2 billion. During the quarter, Diamondback also averaged production of about 969 MBOE per day.

Overall, Wall Street has a Strong Buy consensus rating on Chevron stock based on 19 Buys and two Holds. The average FANG stock price target of $183.75 indicates 3.50% upside potential. At a quarterly dividend of $1.00 per share, FANG offers a yield of 2.7%.

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