Oil Surges on Hormuz Tensions; Duke Pivots to Nuclear

ExxonMobil ($XOM) shares jumped 3.6% after President Trump announced a 20% U.S. toll on cargo transiting the Strait of Hormuz and launched a new wave of military strikes against Iranian targets. The announcement follows an escalation of U.S.-Iran military strikes after Tehran targeted ships in the Strait traveling an alternative path to the Tehran-approved route open for ships paying a fee to the regime. With U.S.-Iran negotiations at an impasse over control of the key global shipping route and Tehran's nuclear program, the diplomatic route appears to be closed off. Oil prices surged on the news, as President Trump said the U.S. will reimpose a blockade on Iranian ports and provide other countries safe passage for a fee through the Strait of Hormuz.

OPEC cut its 2026 demand growth forecast again but raised its 2027 outlook, adjusting to a changed environment that the cartel believes will be temporary. The move reflects ongoing uncertainty around global consumption patterns as the organization balances supply decisions against evolving market conditions. Chevron ($CVX) separately launched a new business with GE Vernova and Microsoft to supply natural gas power to AI data centers, positioning the company to link its existing natural gas operations with fast-growing digital infrastructure demand. $CVX also signed a five-year extension to supply natural gas to Alinta Energy in Western Australia. Microsoft and $CVX are partnering to build a self-powered $7 billion AI data center located 20 miles south of Pecos, Texas.

Duke Energy ($DUK) is shifting focus from offshore wind to expanding nuclear power capacity, trading at $126.86 with a year-to-date gain of 11.3%. The company cites rising costs, supply constraints, and policy uncertainty around offshore wind projects as drivers for the pivot, which is aimed at meeting increasing electricity demand from data centers and advanced manufacturing in the Carolinas. Over three years $DUK shows a 55.1% return, and over five years a 48.1% return. The strategic shift reflects broader utility-sector concerns about offshore wind economics and reliability as power demand from AI infrastructure accelerates. NextEra Energy ($NEE) revised its corporate bylaws, giving its board greater control over when and how shareholder meetings occur, including the option to hold them entirely via remote communication. $NEE shares closed at $87.96, with an 8.69% year-to-date return and a 20.61% one-year total shareholder return, though the 90-day share price return has declined 3.67%.

Halliburton ($HAL) shares jumped 2.9% after the company secured major integrated well construction contracts from TotalEnergies for the GranMorgu deepwater development offshore Suriname. $HAL closed at $35.21, gaining 2.38% in the session as market participants welcomed the contract win. Phillips 66 ($PSX) saw its CFO exercise options at $94.97 per share under a pre-arranged trading plan while retaining an $18.3 million stake in the refiner. The oilfield services sector continues to benefit from deepwater development activity in emerging basins as operators diversify supply sources.