Energy Stocks Advance Premarket as Crude Climbs on Middle East Supply Fears

Premarket trading on Tuesday saw shares of major U.S. energy producers advance, mirroring higher crude prices after Iran cautioned that oil and natural gas installations across the Gulf might be struck in reprisal for attacks against its own facilities.

By 04:53 ET (08:53 GMT), Brent crude futures for November had climbed 2.3% to $99.19 per barrel, while U.S. West Texas Intermediate gained 3.3% to $94.49. Brent settled roughly 1% higher on Monday, having briefly reached $98 a barrel earlier in that session.

In sympathy, Exxon Mobil advanced 1.8% and Chevron rose 1.5% in premarket activity. ConocoPhillips was up 1.6%, while Diamondback Energy and Marathon Petroleum both added 1.1%. Valero Energy gained 1.9%.

The moves came after a weekend of reciprocal strikes between Washington and Tehran, including assaults on vessels. Tehran cautioned that energy infrastructure across the Gulf could be targeted as payback for attacks on its own assets, and vowed to answer U.S. "economic warfare" by imposing a maritime exclusion zone over the Persian Gulf.

Oil-market attention remains concentrated on the Strait of Hormuz. Tehran announced plans to establish a restricted area in the Gulf alongside an alternative shipping lane, raising worries that stricter maritime oversight could further impede tanker movements through the vital strait.

Meanwhile, Iran indicated that an agreement with Oman concerning the strait's operating arrangements was nearing completion, which could provide a framework for lessening shipping disruptions.