Oil Nears $90 on Iran Tensions; SLB Pivots to Data Centers

Brent crude climbed near $90 as geopolitical supply risks intensified following new U.S.-Iran strikes, pushing the 10-year Treasury yield to a 19-month high. The move higher reflects renewed concerns over Middle East production disruptions and potential sanctions impact on global oil flows. California utilities faced pressure as wildfire-related liabilities weighed on the broader utility sector, creating a bifurcated performance across energy subsectors.

ExxonMobil ($XOM) shares rose as the company advanced its participation in Venezuela's oil development, with a 25-year deal targeting production of 1.5 million barrels per day backed by the Trump administration. The company also announced a $100M STEM investment in Guyana, expanding its educational infrastructure commitment in the region. $XOM is positioned to refill America's strategic petroleum reserves through the Venezuela arrangement, marking a significant shift in U.S. energy diplomacy and Western Hemisphere supply dynamics.

SLB N.V. ($SLB) shares rose after agreeing to acquire Kelvion for $3.4 billion, expanding its data center infrastructure business and thermal management capabilities. The company held an M&A call detailing the strategic rationale for the acquisition, which positions $SLB to capitalize on rapid data center growth driven by AI power demand. The deal marks a significant diversification move for the oilfield services giant as it builds exposure to the electricity infrastructure buildout required for expanding computing capacity.

AI data center power demand is reshaping the utility investment landscape, with projections showing demand doubling by 2027 and creating a potential tailwind for clean energy infrastructure. First Solar ($FSLR) emerged in discussions around solar ETFs positioned to benefit from the AI-driven electricity boom, as Elon Musk's solar push coincides with soaring data center power requirements. NextEra Energy ($NEE) appeared among top dividend stock opportunities for September 2026, with the top 25 dividend stocks averaging a 3.11% yield and undervalued by approximately 11% per Dividend Yield Theory, with a projected future CAGR of 14.43%. The convergence of AI infrastructure buildout and renewable capacity additions is creating growth dynamics traditionally absent from the utility sector.

U.S.-Iran tensions escalated with new strikes, driving Brent crude pricing near $90 and raising supply risk premiums across the energy complex. The Venezuela development agreement backed by the Trump administration represents a strategic reorientation toward Western Hemisphere production, potentially reducing reliance on Middle Eastern imports while refilling U.S. strategic reserves. The combination of geopolitical volatility in the Persian Gulf and new production agreements in Latin America is reshaping global crude flows and supply security calculations for major consuming nations.