Israel-Iran conflict fuels best month for energy stocks since 2022
The European energy sector is staging its strongest rally in years as escalating hostilities between Israel and Iran stoke fears of supply disruptions. The conflict is sending oil prices and energy shares sharply higher across the continent.
The Euro STOXX 600 Energy index, which tracks major European oil and gas firms including BP, TotalEnergies, Eni and Repsol, has surged nearly 8% month-to-date, on track for its strongest monthly gain since October 2022.
The rally stands in stark contrast to the broader Euro STOXX 600 index, which has declined by 1% over the same period.
This 9 percentage point gap marks the sector's widest monthly outperformance since May 2022, underscoring the market's sharp pivot towards energy names as investors brace for prolonged geopolitical tensions in the Middle East.
BP shares have climbed 9% so far in June, on course for their best month since September 2023.
Italy's Eni has gained 9.1%, its strongest monthly showing since October 2022, while France's TotalEnergies is up 7%, a level last seen in April 2024.
Portuguese energy company Galp Energia has led the sectoral gains with a 12% jump.
The surge in energy equities mirrors a significant rally in oil prices. Brent crude has spiked to $75 a barrel, up 20% this month. That marks the largest monthly increase since November 2020, when news of successful COVID-19 vaccine trials first lifted global markets.
Related
Trump demands Iran's 'unconditional surrender' again as conflict with Israel continues
Israel starts flying home citizens stranded abroad during conflict with Iran
Iran asks its citizens to delete WhatsApp from their devices
Tehran residents flee as Israel-Iran conflict continues for fifth day
Oil prices may stay higher for longer, with analysts warning that the geopolitical risk premium now embedded in crude markets could persist.
Following Israeli airstrikes on Iranian nuclear and military targets, Tehran has raised the spectre of a potential closure of the Strait — a move that would choke off nearly 20 million barrels per day of crude and refined products, according to the International Energy Agency (IEA). While a complete shutdown remains unlikely, even limited disruptions could unsettle markets.
'There's the potential for disruptions to shipping through the Strait of Hormuz,' said Warren Patterson, head of commodities strategy at ING.
According to the expert, almost a third of global seaborne oil passes through this checkpoint and any material threat to that route sends an immediate signal to energy markets.
Patterson indicated that in the event of a significant disruption to flows through the Strait of Hormuz, oil prices could surge to $120 per barrel.
On Tuesday, President Donald Trump convened a high-stakes meeting with his national security team inside the White House Situation Room to discuss the possibility of US military involvement alongside Israel in its war against Iran.
Earlier that day, Trump had abruptly departed the G7 summit in Canada, fuelling speculation that a major foreign policy shift was imminent.
Although no official decision has yet been announced, Iran issued a clear warning that it would target US military bases across the Middle East if Washington entered the conflict.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Chevron Is One of the Largest Energy Companies by Market Cap. But Is It a Buy?
With a $256.7 billion market cap, Chevron is one of the largest energy companies. Chevron has robust operations found throughout the energy value chain. There are valid arguments regarding the bull and bear cases for Chevron stock. 10 stocks we like better than Chevron › From the imposition of tariffs to the fear of a recession to the escalation of military conflicts around the world, there's been no shortage of catalysts contributing to the wild price fluctuations in energy prices through the first half of 2025. Despite the volatility, the oil benchmark West Texas Intermediate has essentially returned (as of June 19) to the level it was at when 2025 began. Investors, consequently, have questioned if now's a good time to fuel their portfolios with some energy exposure -- especially with a position with an energy industry stalwart like Chevron (NYSE: CVX). But merely because Chevron, with a market cap of $256.7 billion, is an industry leader -- it's one of the largest energy companies based on market cap, in fact -- doesn't mean that it's a definite buy. Let's try to drill down, therefore, and see if today is a good time to click the buy button on Chevron stock. Chevron stock advocates will point to a number of points that illustrate why shares of the oil supermajor are so appealing right now. For one, the company operates throughout the energy value chain, which helps mitigate the risk of any one of its businesses -- from exploration and production to refining -- hitting a downturn. The upstream business is especially robust, and it's expected to continue contributing to Chevron's strong financials. Including the growth of its TCO joint venture in Kazakhstan as well as producing assets in the Permian Basin and Gulf of America, Chevron projects its upstream business will contribute $10 billion in incremental free cash flow in 2026 if oil benchmark Brent Crude averages $70 per barrel, or $9 billion if Brent Crude averages $60 per barrel. The company's strong free cash flow reinforces another great feature of Chevron stock: the dividend. For 38 consecutive years, Chevron has hiked its dividend higher -- a noteworthy feat since management accomplished this throughout the financial crisis and the challenges of the COVID-19 pandemic. This sincere dedication to rewarding shareholders bodes well for those on the prowl for a resilient passive income play. With a 4.6% forward dividend yield, Chevron stock is certainly attractive, but even more so in light of management's conservative approach: Chevron's payout ratio has averaged 68.4% over the past five years. While there's a lot to like about Chevron stock, not everyone will be eager to fill up on it. Those with a lower threshold for risk, as well as those averse to investing in commodities and enduring downturns in energy prices, will be wary of buying shares. Although energy prices have rebounded from the lows they touched in April, there's no certainty that they won't plunge again during the second half of 2025. Should energy prices dip, Chevron may be inclined to scale back operations at lower margin projects or not advance growth projects. Additionally, Chevron management has demonstrated a strong interest in returning capital to shareholders through share buybacks. The company has bought back shares in 18 of the last 22 years, for example, including $15.2 billion in 2024. Some investors balk at the idea of share buybacks as an effective way to return capital to shareholders, preferring to see the cash returned through dividends. Lastly, some will argue that companies with nuclear energy exposure, instead of oil stocks, are a better opportunity right now. With President Trump signing several executive orders in support of reigniting enthusiasm for nuclear energy, stocks in this niche of the energy industry may make a better option for those interested in powerful growth opportunities. There are valid arguments to be made by both bulls and bears regarding Chevron stock, but at this point, I'm inclined to side with the bulls. Between its history of resilience during market downturns, steadfast dedication to the dividend, and the fact that shares are reasonably priced -- they're trading at an operating cash flow multiple of 8.6 -- today seems like a great time for investors to click the buy button on Chevron stock. Before you buy stock in Chevron, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Chevron wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy. Chevron Is One of the Largest Energy Companies by Market Cap. But Is It a Buy? was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
an hour ago
- Yahoo
'We're not trying to be Silicon Valley': Inside Station F, where Paris is incubating the next tech and AI juggernauts
Paris's Station F, a converted train station, is a prolific incubator for tech startups. The incubator has doubled down on the AI boom and is getting more interest from US startups. Business Insider visited the vibrant space to see how it's driving France's tech boom. In Paris's balmy thirteenth district, an airy rail depot that's been converted into a startup incubator is now the epicenter of France's tech boom. Walking through Station F, it's hard not to see how the 366,000-square-foot space has been influenced by Silicon Valley, with its amenities like a huge cafeteria and an under-construction yoga studio that are reminiscent of Big Tech campuses. But Station F's director, Roxanne Varza, told Business Insider that it is not trying to become an American incubator. "We've been inspired by a lot of players, and we look up to Y Combinator. But we're not trying to be Silicon Valley," she said. Now, politics is helping drive international founders here, including Americans, Varza told BI during a recent visit. The election of Donald Trump and Brexit were among the biggest catalysts driving international founders to Station F, Varza told BI. After France, the US and UK are the most represented nationalities on campus, which houses entrepreneurs from 70 nationalities, Varza said. At times of political volatility, the campus has been a magnet for founders seeking a global outlook and a supply of talent. Trump 2.0 — and its aftermath, including the announcement of Stargate and DeepSeek — galvanized European founders to step up, Varza said. The US tech ecosystem secured $209 billion in VC funding in 2024, about 17 times more than France. But Paris is catching up to its global counterparts. In 2025, technology research platform Dealroom billed the city as Europe's new tech champion, overtaking London's mantle. From 2017 to 2024, the combined enterprise value of startups based in Paris increased 5.3 times, more than any other European tech hub. Climate tech founders in particular have been coming from the US to Station F amid the Trump administration cutting incentives for green industries in the US, Varza said. Materials discovery startup Entalpic, which launched in 2024, has had a flurry of US applicants vying for jobs at the company since the start of the year, its cofounder, Alexandre Duval, told BI. Duval had planned to move his startup out of Station F once it reached 20 employees, but decided to stay. "We have so many resources here: meeting rooms, onboarding, events, opportunities to meet people. It's good," he said. Station F, the handiwork of French billionaire Xavier Neil, launched in 2017 to drive entrepreneurship in France's tech ecosystem. The Station F team accepts around 40 startups every month. In addition to access to the incubator's coworking space, startups get resources and mentorship, including from government officials and Big Tech companies, such as Meta and Microsoft, that have offices at Station F. Station F's flagship Founders Program offers founders workshops and masterclasses. In return, the incubator takes 1% equity — a more favourable figure than the 6% taken by Y Combinator. The incubator also aims to write checks of $50,000 to $100,000 to around 20 upstarts each year. The result is a hubbub of innovators collaborating and ideating all days of the week — a far cry from how some corners of LinkedIn see Europe's tech ecosystem as the butt of the joke for its supposed lax work culture compared to Silicon Valley. Station F has welcomed everyone from the prime minister of Ethiopia to the CEO of Cisco — and the morning I arrive, the CEO of GitHub is scheduled to speak for a Q&A as part of VivaTech, France's flagship tech event that attracted speakers such as Nvidia's Jensen Huang. "The No. 1 reason people come here is for the access to people," Varza added. Like many of its international counterparts, Station F has doubled down on the AI boom. Government initiatives under France's president Emmanuel Macron, as well as generous financing from the country's national bank, Bpifrance, have galvanized the region's AI startups. In 2023, French AI startups raised $1.9 billion, per PitchBook data. In 2024, this figure rose by more than 50% to $2.98 billion. Notable rounds included Mistral's $600 million raise in June 2024 and H's mammoth $220 million seed round in May 2024. So far this year, French AI companies have raised $1.7 billion in VC funding, and Macron announced in February an additional $112 billion in private sector funding earmarked for the country's AI ecosystem. High-profile investors such as Andreessen Horowitz, General Catalyst, and Lightspeed Ventures have flocked to back prolific AI startups founded in France, such as Mistral, Dust, and Poolside. Open-source AI company Hugging Face, now valued at $4.5 billion, was once incubated in Station F. Now, Varza said, around 40% of France's AI startups are spinning out of the program. In 2024, 34 out of 40 of the top startups touted by Station F — its "Future 40" — were AI companies. "Station F is one of the biggest AI communities in Europe," Varza says. "It's also an entry point for so many tier one investors coming to Europe — and we're seeing more Series A and B rounds too." Beyond helping AI startups raise financing, Station F also participates in regulatory debates about France's tech ecosystem, Varza added. "Right now, the government is talking about how we can fiscally incentivise AI companies and push creation. We're in those discussions very actively." I was keen to speak to AI and climate founders, and within two minutes, Varza had grabbed two people for me to speak to. It was a reflection of how Station F operates: touting collaboration over competition. Despite the vast space, I saw founders from different startups huddled together in various pockets of the station, congregating for in-house events such as Q&As, as well as the bustling restaurant space. "We saw incredible things happen when people were working in close spaces," Varza said. "You see everything from VR and AI companies collaborating — and even companies winding down and neighbouring teams acquiring them." She recalled how one startup in the incubator wanted to pivot and copied a neighbouring company's idea. "It's our only copycat story, but they both ended up being pretty successful," she added. Station F is working on initiatives with Japan and the Gulf region, Varza said — but what excites her most is the opportunity to take what they've built in Paris and "build those bridges" internationally across Europe. Read the original article on Business Insider
Yahoo
an hour ago
- Yahoo
Best Stock to Buy Right Now: Realty Income vs. W.P. Carey
Realty Income is the largest net lease REIT. The second runner-up in the net lease REIT space is W.P. Carey. Realty Income's yield is 5.6% while W.P. Carey's is also about 5.6%. 10 stocks we like better than Realty Income › If you are looking at buying stock in Realty Income (NYSE: O), you should probably also be considering competitor W.P. Carey (NYSE: WPC). There are a number of reasons for this, from their net-lease business models to their dividends. Here's a look at some key differences and similarities between these two real estate investment trusts (REITs). To start, Realty Income and W.P. Carey do very (very!) similar things. They both own single-tenant properties leased using net leases, which require tenants to pay for most property-level expenses. They both have exposure to retail, warehouse, and industrial assets, with each dipping their toes into unique, one-off properties. They both have portfolios with exposure to North America and Europe. And both have very long histories. W.P. Carey actually helped to popularize the net lease concept before it was a public entity. In many ways, the two net lease REITs are kind of interchangeable. In fact, they even have similar dividend yields, with Realty Income at 5.6% and W.P. Carey offering just a bit more than 5.6%. But no two companies are exactly the same. Realty Income, for instance, is a fairly large company with a roughly $50 billion market cap. W.P. Carey's market cap is a little under $14 billion. That said, the latter is the second-largest net lease REIT. Realty Income just happens to be an industry giant. That extends to the respective portfolios, with Realty Income owning over 15,600 properties and W.P. Carey "just" 1,600 properties or so. That difference requires a bit more clarification, however, because W.P. Carey is more heavily tilted toward industrial and warehouse assets, which tend to be larger. Realty Income's focus is more on retail properties, which tend to be smaller. In some ways, their portfolios are actually somewhat complementary to each other. It wouldn't be a bad plan to own both of these industry-leading net lease REITs. However, there's another big difference that might bother some dividend investors. Realty Income has increased its payout annually for 30 consecutive years. W.P. Carey reset its dividend lower in late 2023 after making the decision to exit the office sector, a move Realty Income made a few years earlier (without a dividend cut). Another difference is that Realty Income pays out its dividend monthly, while W.P. Carey pays on a quarterly basis. W.P. Carey quickly restarted increasing its dividend every quarter, as it was doing prior to the dividend reduction, but its streak still falls well short of Realty Income's. That said, Realty Income is so large that it requires massive investments each year to grow. That shows up in the dividend, which it pays monthly, but increases quarterly, as well. But the last increase was a tiny 0.2% or so (2.3% annualized). W.P. Carey's smaller size allows it to grow more quickly, with its most recent quarterly dividend increase amounting to roughly 1.1% (3.5% annualized). For investors who want a combination of yield and dividend growth, W.P. Carey probably comes out on top here. In the end, Realty Income is something of a slow-moving industry giant. It has a strong foundation, but it isn't going to excite you. W.P. Carey is smaller and more aggressive, leading to faster growth. Given the similar yields, Realty Income will probably interest more conservative types while W.P. Carey will attract more aggressive income investors. Or, as noted, you could buy them both, which might give you the best of both worlds. Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Reuben Gregg Brewer has positions in Realty Income and W.P. Carey. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy. Best Stock to Buy Right Now: Realty Income vs. W.P. Carey was originally published by The Motley Fool Sign in to access your portfolio
