The United States-Iran war has tightened a crucial energy chokepoint, with the effective closure of the Strait of Hormuz threatening a corridor that normally carries about a third of global seaborne crude and roughly a fifth of the world’s LNG.
This Middle East conflict is landing hardest in Asia, where countries like China, India, and Thailand face rising fuel costs and renewed energy security fears as cargoes are delayed or rerouted and priced at a premium.
Energy’s latest spike and the risk of a longer conflict are now feeding straight into equity markets, as the chance of a serious supply shock in the Gulf climbs with each new headline. J.P. Morgan has responded by turning more positive on select European majors, upgrading two high‑yield oil stocks on the view that their global production, downstream assets, and balanced portfolios stand to benefit.
Building on that call, these two high‑yield names now sit at the center of the story, offering a mix of income today and potential upside if prices stay firm or spike again as the U.S.-Iran conflict drags on. Let’s dive in.
High-Yield Dividend Stocks to Buy #1: Eni S.P.A. ADR (E)
Eni S.p.A. (E) is an integrated energy group headquartered in Rome, with operations spanning oil, gas, chemicals, and low‑carbon solutions. Eni’s equity is around $78.1 billion and offers a forward annual dividend of $1.67 per share, translating to a yield of roughly 3.5%.
Eni trades near $46.79 with a year-to-date (YTD) gain of about 23.3% and a 52‑week advance of roughly 66.5%.
This leaves the shares at about 13.6x trailing earnings and 1.29x book value, both below sector medians of 15.9x and 1.82x, indicating the stock still trades at a clear discount.
Eni, Anaergia (ANRGF), and CREvolution recently announced a new platform designed to scale demand for renewable fuels such as biodiesel and sustainable aviation fuel, with an initial model at Eni’s Gela biorefinery.
Eni’s latest financials also speak to that cash‑generation story. This fourth‑quarter 2025 report, released in late February 2026, showed adjusted earnings of $0.87 per ADR versus a consensus estimate of $0.78, an upside surprise of around 11.5% that points to better‑than‑expected profitability in a challenging environment.
It detailed quarterly revenue of about $24.4 billion, with sales up roughly 1.8% year‑on‑year (YoY), even as reported net income for the period came in near $105 million, down sharply versus the prior year.
This earnings report sets the stage for the next catalyst, as Eni is expected to report its first‑quarter 2026 numbers on April 23, with the Street looking for about $0.92 per ADR.
Eni currently carries a consensus “Moderate Buy” rating from 18 analysts, with a mean target price of $41.75 that implies roughly a 10.8% downside from its recent price.
High-Yield Dividend Stocks to Buy #2: TotalEnergies SE (TTE)
TotalEnergies SE (TTE) is a $187.8 billion French integrated multi‑energy company, active in oil, gas, chemicals, renewables, and power, based in Paris. They offer a forward annual dividend of roughly $2.11 per ADR, equating to a yield around 2.6%.
TTE changes hands around $76.92 with a 52‑week increase of roughly 28.48% and a YTD gain of about 17.58%.
Its profile is backed by valuation metrics of about 0.97x sales and 6.60x cash flow, both below sector medians of 1.63x and 7.17x, which signals the shares still trade at a modest discount to peers despite resilient cash generation and more diversified earnings streams.
TotalEnergies recently agreed to supply Google with 1 GW of solar capacity for its Texas data centers under a 15‑year power purchase deal, locking in long‑term contracted cash flows in U.S. renewables while strengthening ties with a blue‑chip technology customer. This same strategic push is evident in Europe, where the company has partnered with Allianz Global Investors to develop roughly 800 MW of battery storage projects in Germany, targeting one of the region’s most dynamic power markets.
Total’s fourth‑quarter 2025 update, released in early 2026, showed earnings per share of about $1.73 versus a consensus forecast of $1.80, a shortfall of roughly 3.89% that came alongside strong top‑line momentum. It reported December‑quarter revenue of roughly $50.62 billion, with sales up about 15.46% YoY.
The same release detailed net income of around $2.91 billion, a decline of roughly 21.10% compared with the prior year. Their guidance section pointed to its next key checkpoint on April 29, with the Street expecting Q1 2026 EPS near $1.71 versus $1.83 a year earlier, implying a projected YoY decline of about 6.56% that still leaves meaningful earnings power.
TotalEnergies currently holds a consensus “Moderate Buy” rating from 23 analysts, with a mean target price of $75.38 that implies roughly a 2% downside.
Conclusion
Put together, Eni and TotalEnergies look like solid ways to get paid while the U.S.–Iran conflict keeps a premium in energy prices. Both offer meaningful yield, discounted valuations, and real operating leverage to any further supply shock out of the Gulf. In a calmer scenario, returns are probably cool toward those dividend checks and modest multiple expansion. However, in this stickier conflict, the balance tilts toward these stocks grinding higher as cash flows surprise on the upside and the market keeps reaching for safety in big integrated oil.
On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
