3 Targeted Oil Plays as the Iran Crisis Lifts Crude

Key Points

• Oil prices are spiking amid Iran's threat to disrupt traffic through the Strait of Hormuz, creating targeted opportunities in energy stocks.
• Halliburton and Baker Hughes could benefit from increased drilling activity and LNG supply disruptions.
• YPF offers higher-risk upside tied to Argentina’s Vaca Muerta shale expansion and pipeline growth.

These are the times when investors need a strong stomach. Oil prices are surging due to the conflict between the United States and Israel against Iran. Initially, that caused energy stocks tied to the oil and gas sector to rise. But many of those stocks are giving up their gains as investors begin to view the conflict through a wider lens.

The immediate concern that’s causing oil prices to spike is Iran’s threat to halt traffic through the Strait of Hormuz. This is a critical transit point for approximately one-third of the world’s seaborne crude exports.

As the nature of the length and scope of the disruption comes into view, this isn’t likely to lift all oil stocks. Instead, the gains may be more targeted. For example, prior to the military strike against Iran, the oil market was already pricing in an oversupply.

However, if key production is shut in for a significant period, it could create a scenario where more supply is needed. In that case, it may be time to look for companies in the upstream end of the sector as well as oil services companies.

Many stocks in this sector have moved sharply since military action started. That means investors may want to wait for a pullback. However, here are three names that could be worth having on a watchlist.

Halliburton Positioned for an Upstream Rebound

Halliburton NYSE: HAL is one of the leading names in the oil services sector. The company is a leading provider of drilling and completion services. Oil service companies tend to benefit early in upcycles as producers increase activity.

Institutional buying in HAL stock has been surging in the last two quarters on expectations that Halliburton would be a key beneficiary of the Trump administration’s hard push on domestic oil production.

It’s unclear to what extent U.S. oil companies will be able to ramp up production to offset any supply disruptions from the Middle East. However, Halliburton may be one of the key players as operations begin to start up in Venezuela. The cancellation of an asset sale in Venezuela is paving the way for the company to restart operations.

HAL stock is up roughly 40% in the last 12 months and over 24% in 2026. Analysts were raising their price targets even before this new catalyst. That said, it’s nearing its consensus price target as well as its 52-week high.

But if investors need a nudge, they could consider Halliburton’s dividend, which has increased for four consecutive years after it was aggressively cut in 2020. In fact, the dividend is within one cent per share of its 2019 price on a quarterly basis.

Baker Hughes Gains Leverage to LNG Disruption

Crude oil isn’t the only commodity that’s undergoing a price spike. Natural gas is also surging after QatarEnergy, the country’s state-owned natural gas company, halted production of liquefied natural gas (LNG). That takes about 20% of the world’s LNG production offline.

That makes a case for Baker Hughes NASDAQ: BKR. In addition to being an integral part of the oil services sector, the company is involved in over 60 LNG projects worldwide. One of the primary growth drivers in the last 12 months has come from the data center buildout. However, the company would be a likely beneficiary of a prolonged supply disruption.

The key for investors is that BKR stock is up nearly 45% in the last 12 months. That had pushed the stock above its consensus price target and near its 52-week high. This situation will likely change that calculus in the short term. Providing evidence of that is that, on March 3, BMO Capital Markets raised its price target to $70 from $65.

YPF Offers High-Risk, High-Reward Shale Growth

Investors with a higher risk tolerance may want to look at emerging markets. One name to consider is YPF Sociedad Anónima NYSE: YPF. This is an integrated oil and gas company headquartered in Argentina.

The company delivered record shale oil production from its Vaca Muerta formation in 2025, even as Brent crude prices fell by 15%. The Vaca Muerta project delivers the light, sweet crude that is needed by much of the world.

Later this year, the company is on track to start operations in the VMOS pipeline, which will enable the company to increase shale oil production from its current level of 170,000 barrels to 290,000 barrels by 2027.

That could also unlock the stock price. YPF stock has climbed over 775% in the last five years. However, it’s essentially flat in the last 12 months. That appears to be the sentiment of analysts. The consensus price target for YPF stock is $41.67, which suggests about 18% upside for the stock.