Chevron could benefit significantly if tensions between Iran and the United States remain high and the Strait of Hormuz is shut again, Bank of America analysts say. The firm maintains a Buy rating on the stock with a $210 price target, implying roughly 19% upside from Wednesday’s close. “CVX is our preferred way to capture higher oil prices … integrated producers are pricing in long‑term Brent below $70 a barrel, which we view as an attractive entry point,” analyst Jean Ann Salisbury noted in a client memo dated Wednesday. “We favor CVX over XOM because of its Venezuela exposure, limited Middle‑East footprint, and greater earnings sensitivity to price rises expected in 2026‑27.” Chevron shares have risen about 15% year‑to‑date as the Iran‑U.S. standoff drove crude prices higher. Control of the Strait of Hormuz, which moves roughly 20% of global oil shipments, lies at the heart of the dispute. Brent and WTI futures have climbed about 26% in 2026, spiking earlier this week after President Donald Trump declared the U.S.–Iran ceasefire “over.” Prices eased slightly on Thursday, but BofA expects them to stay elevated as the United States continues to resist efforts to settle its campaign against Iran. “Medium‑term restocking demand should underpin a $70‑per‑barrel level, assuming the strait’s reopening is not flawless — a reasonable assumption for now,” Salisbury wrote. Although a sizable volume of Middle‑Eastern crude is slated for near‑term release, its actual delivery hinges on easing Iran tensions, which appears unlikely, she added. Bank of America’s rating aligns with the broader Wall Street consensus; of the 26 analysts covering Chevron, 21 have a Buy or Strong Buy recommendation.
Source link
