Many of today’s best-performing stocks are in the oil and gas industry.
Santos, Karoon Energy, Viva Energy, Woodside Energy, Beach Energy and Ampol shares are doing far better than other stocks on the Australian market today.
Oil prices spiked after a sharp escalation in Middle East tensions overnight — and if they stay high for longer, it will be good for the finances of those companies.
Brent crude futures are trading at $US75.95 per barrel, after it rose another 2.4% in the past hour.
Oil stocks are leading the gains on the ASX 200. (LSEG)
This was after the US military launched a series of strikes against Iran, heightening concerns that its fragile ceasefire was faltering.
The strikes against Iran were in response to Iranian attacks on three commercial ships that were passing through the Strait of Hormuz, US Central Command said in a statement.
Maritime authorities have also raised the threat risk for vessels transiting the waterway to “severe.”
The US Treasury, meanwhile, revoked a temporary licence to Iran, which allowed the country to sell oil to the rest of the world.
While traffic through the strait has picked up in the past week, it remains spotty, ranging between one-third and one-fifth of its pre-war levels.
– with Reuters