Oil Stocks That Could Benefit If Strait Of Hormuz Tensions Keep Rising

Oil is back above $100, shipping lanes near Iran remain on edge, and political headlines are suddenly moving crude more than quarterly reports. That mix creates real risk for anyone exposed to global energy, but it can also open up mispricings if you understand which businesses sit closest to the action. This article walks through three large integrated producers tied to this Iran and Strait of Hormuz story, and shows how the same news can create very different setups for each stock.

The companies in this article are just a small sample, and the full screen surfaced 18 more large integrated producers with equally compelling narratives that are not covered here. To identify and analyze your own higher conviction ideas among these global operators, head straight to the Global Integrated Oil & Gas Producers screener.

ONEOK (OKE)

Overview: ONEOK is a large US midstream operator that gathers, processes, transports, stores, and exports natural gas, NGLs, refined products, and crude.

Operations: ONEOK generates about US$19.5b from refined products and crude, US$16.1b from natural gas liquids, US$7.5b from gas gathering and processing, and US$2.1b from pipelines, all in the United States.

Market Cap: US$60.9b

ONEOK fits this Global Integrated Oil & Gas Producers theme as the midstream workhorse that keeps US molecules moving when geopolitics makes every barrel and molecule count.

"ONEOK's direct exposure to surging U.S. LNG export demand and growing petrochemical sector consumption, especially through Gulf Coast connectivity and new export terminals, positions the company for multi-year step changes in pipeline and export volumes, supporting durable, above-trend revenue and earnings growth into 2027 and beyond."

What really matters from here is how one quiet shift in contract economics ultimately filters through to cash flow resilience and valuation.

That contract shift is exactly what the full narrative for ONEOK unpacks, including where volumes, tariffs and risk sharing could be quietly accelerating or masking future cash flow strength.

Imperial Oil (TSX:IMO)

Overview: Imperial Oil is a large Calgary based integrated producer that explores, extracts, refines, and sells crude oil, natural gas, and refined fuels across Canada.

Operations: Imperial Oil generates about CA$57.3b from downstream refining and marketing, CA$17.2b from upstream production, and CA$1.4b from chemicals, mainly in Canada.

Market Cap: CA$87.2b

Imperial Oil is the closest thing to a global major in this screen, tying together Canadian oil sands, refineries, and branded fuel networks into one integrated crude price play.

"Major efficiency improvements at Kearl, including unit cash cost reductions (~$2/bbl YoY, productivity upgrades, and extension of turnaround intervals), position Imperial Oil for sustained margin expansion and higher ROIC as production targets increase toward 300,000 bbl/d, improving future net margins and earnings."

What matters next for Imperial Oil is how one pressure point on long term heavy oil economics shapes those margin gains investors are banking on.

That heavy oil question is exactly where the full narrative for Imperial Oil connects the dots on how efficiency gains, price spreads, and future capital choices could be accelerating or quietly stalling Imperial Oil’s upside.

Imperial Petroleum (IMPP)

Overview: Imperial Petroleum is a Greece based tanker owner that moves refined fuels and crude globally, tightly linking investors to seaborne oil trade flows.

Operations: Imperial Petroleum generates about US$191 million from transportation shipping activities, with all reported revenue attributed to Greece.

Market Cap: US$262 million

Imperial Petroleum provides exposure to the Global Integrated Oil & Gas Producers theme from the waterline, where chokepoint disruptions, rerouted cargoes, and changing trade patterns can quickly reshape how much seaborne transport capacity is worth.

"The company has shifted a larger portion of its fleet onto time charter contracts, increasing forward earnings visibility and providing a more predictable cash flow, reducing exposure to short-term spot rate volatility and supporting higher net margins."

What may influence the story from here is how any unresolved supply tightness in key routes ultimately affects future rate strength and profitability.

If that supply tightness story has your attention, read the full narrative for Imperial Petroleum to see how Imperial Petroleum's charter mix could be quietly accelerating or capping future upside.

Seeking Alternatives Beyond Oil Majors

Fresh ideas move first. By the time every investor piles into obvious oil stories, quieter themes may already be breaking out or dropping off. Scan under the radar for now and act early.

• Spot income workhorses with robust payouts before yield hunters crowd in by checking the 6 dividend fortresses, curated from companies with strong cash support behind those distributions.
• Track potential breakout operators with sturdy balance sheets and real earnings power using the 32 high quality undervalued stocks, curated from businesses combining quality fundamentals with compressed valuations.
• Ride long term infrastructure momentum while it still flies under most radars by scanning the 39 power grid technology and infrastructure stocks, curated from companies building and upgrading critical grid assets.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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