What Happened?
A number of stocks jumped in the afternoon session after oil prices surged following attacks on commercial ships near the Strait of Hormuz.
Multiple tankers were reportedly struck by projectiles in the critical shipping lane, a key passageway for global oil transport. The incident immediately pushed crude oil prices higher, with the August contract rising to over $72 a barrel. This development adds a layer of uncertainty for investors, as sustained higher oil prices can fuel inflation.
Simultaneously, a drone attack on Russia's largest refinery signaled a significant expansion in the Ukraine conflict, further pressuring prices upward. Higher oil prices typically translate to increased revenues and profitability for oil and gas companies, boosting investor sentiment across the sector.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Oilfield Services company Expro (NYSE: XPRO) jumped 2.9%. Is now the time to buy Expro? Access our full analysis report here, it’s free.
- Infrastructure company Kinder Morgan (NYSE: KMI) jumped 2.9%. Is now the time to buy Kinder Morgan? Access our full analysis report here, it’s free.
- Oilfield Services company Nabors Industries (NYSE: NBR) jumped 2.9%. Is now the time to buy Nabors Industries? Access our full analysis report here, it’s free.
Zooming In On Kinder Morgan (KMI)
Kinder Morgan’s shares are not very volatile and have had no moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Kinder Morgan is up 17.2% since the beginning of the year, and at $32.47 per share, it is trading close to its 52-week high of $34.31 from May 2026. Investors who bought $1,000 worth of Kinder Morgan’s shares 5 years ago would now be looking at an investment worth $1,774.
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