Chevron's stock soared 5.32% in pre-market trading on Monday, marking a significant upward movement for the energy giant.
The surge in Chevron's shares coincided with a broad rally in oil stocks, as escalating conflict in the Middle East involving the U.S. and Israel's strikes on Iran jolted global markets. The tit-for-tat attacks sparked fears of oil supply disruptions, particularly through the critical Strait of Hormuz chokepoint, pushing crude prices sharply higher. Benchmark Brent crude futures jumped as much as 13%, while U.S. West Texas Intermediate crude climbed over 12% at one point.
Adding to the company-specific dynamics, Chevron confirmed it was instructed by Israel's Energy Ministry to temporarily shut-in production at the Leviathan offshore gas field due to the security situation. Meanwhile, several analysts raised their price targets on Chevron, with Citigroup increasing its target to $210 from $179 and BofA Global Research raising its objective to $206 from $188, maintaining buy ratings.
