Oil prices in the United States have soared to a four-month peak, primarily driven by increasing geopolitical tensions between the U.S. and Iran. Currently, West Texas Intermediate (WTI) crude is priced at $62.97 per barrel, while Brent crude, the global benchmark, stands at $68.12 per barrel. This uptick in crude oil prices follows a provocative statement from U.S. President Donald Trump, who threatened military action against Iran unless it agrees to negotiate a nuclear deal.
Trump expressed hope that Iran would “quickly “Come to the Table” and negotiate a fair and equitable deal,” warning that any future attack would be “far worse” than prior military actions against Iranian nuclear sites. In response to the escalating situation, shares of oil giants Chevron (CVX) and Exxon Mobil (XOM) initially fell by as much as 2% before closing the trading session with a minor increase.
Both Chevron and Exxon Mobil are poised to release their Q4 2025 earnings reports later this week. Analysts anticipate that lower commodity prices will negatively impact the financial results of these energy firms. Chevron is projected to report a year-over-year earnings decline despite an increase in revenues for the quarter ending December 2025. Company executives, including CEO Mike Wirth and CFO Eimear Bonner, are expected to address investors during this announcement.
Market participants are closely watching the upcoming OPEC+ meeting scheduled for February 1, looking for insights into production targets for March and updates regarding Kazakhstan”s production plans. Notably, Chevron”s stock has received a consensus Strong Buy rating from 20 Wall Street analysts, with 16 Buy and four Hold recommendations in the last three months. The average price target for CVX is $179.90, indicating a potential upside of 5.97% from current trading levels.
Similarly, analysts have shown optimism regarding ExxonMobil”s growth potential, with several firms maintaining an Overweight rating. Piper Sandler has set the highest price target for XOM at $142.00, reflecting a bullish outlook on the company”s future performance amidst the fluctuating oil market.
