Exxon Mobil Rises 5.9% after Brent Jumps 13% on Geopolitical Risk
Exxon Mobil shares jumped 5.9% in premarket trading on March 2 after Brent crude spiked 13% to $82.37/barrel and WTI rose over 12% to $75.33 as U.S.-Iran tensions near the Strait of Hormuz escalated supply concerns. The company’s low-cost upstream operations in the Permian Basin and Guyana are poised to generate higher free cash flow from elevated oil prices.
1. Price Surge Drives Share Gain
Exxon Mobil shares climbed 5.9% in premarket trading on March 2 following Brent crude’s 13% jump to $82.37/barrel and WTI’s 12% rise to $75.33, as escalating U.S.-Iran tensions near the Strait of Hormuz tightened supply risk.
2. Permian and Guyana Operations Fuel Gains
The integrated major’s low-cost upstream assets in the Permian Basin and offshore Guyana are positioned to generate outsized free cash flow as high oil prices boost margins per barrel.
3. Broader Market Reaction
While the S&P 500 slid roughly 1–1.5% on energy sector strength, investors rotated toward oil producers viewing them as defensive plays against potential supply disruptions and further crude price escalations.