ConocoPhillips (COP) is up about 3% today as the energy complex rallies sharply on a renewed crude-price spike. WTI crude surged more than 6% and traded above roughly $106 per barrel as markets priced in sustained geopolitical supply risk tied to Iran and uncertainty around the Strait of Hormuz, a critical global oil shipping corridor.

The crude rally is being reinforced by additional supply-tightening signals beyond geopolitics. U.S. data and market commentary highlighted notable draws in crude and refined-product inventories alongside a jump in U.S. exports to record levels above 6 million barrels per day, tightening the near-term balance and lifting upstream producers as investors reprice cash-flow expectations at higher realized prices.

As a large-cap upstream producer, ConocoPhillips’ earnings and free cash flow are highly sensitive to oil prices, so a multi-dollar jump in crude tends to translate quickly into higher forward cash-flow assumptions and improved capital-return capacity in investor models. The stock’s move is also occurring with the company heading into its next earnings report, which can increase sensitivity to commodity swings as traders adjust positioning ahead of results.