Iran's Foreign Minister announced the Strait of Hormuz is fully open to all commercial vessels during the ceasefire, causing crude oil to plunge 14% to $81/barrel. Airlines and cruise lines surged as fuel costs declined, while energy and chemical companies fell sharply. The S&P 500 reached record highs with the Nasdaq 100 on its 13th consecutive gaining session.

Seven major energy stocks are trading at historically low valuations (7x-11x forward P/E) despite oil prices above $90/barrel due to the Strait of Hormuz crisis. The sector has underperformed crude oil gains, creating a potential opportunity if the supply disruption persists, though risks remain if a ceasefire rapidly brings prices back down to $65-70.

Energy sector stocks have emerged as unexpected S&P 500 outperformers in 2026, driven by geopolitical tensions in the Middle East. Valero Energy, LyondellBasell, and APA Corporation have gained 44%, 66%, and 60% respectively year-to-date, benefiting from disrupted oil flows through the Strait of Hormuz. Recent pullbacks following ceasefire announcements may present entry opportunities for investors.

Gasoline prices surged 21.2% in March 2026, the largest monthly increase since 1967, driven by disruptions to oil flows through the Strait of Hormuz due to the Iran war. National average gas prices jumped from $2.98 to $4.15 per gallon in six weeks. Goldman Sachs upgraded several refiner stocks as beneficiaries of elevated crack spreads and tighter energy supply chains, while economists debate whether this represents a temporary shock or a sustained inflationary regime.

The Schwab U.S. Dividend Equity ETF (SCHD) is recommended as a reliable choice for passive income investors. The ETF recently underwent reconstitution, removing 22 stocks including AbbVie, Cisco Systems, and Valero, while adding 25 stocks including UnitedHealth Group, Procter & Gamble, and Abbott Laboratories. The ETF reduced exposure to energy and materials sectors while increasing healthcare and tech exposure. With a dividend yield of approximately 3.5%, it offers more than three times the S&P 500 average yield.

Valero Energy has surged 45% year-to-date, driven by tight global refining capacity and superior operational efficiency. The company benefits from wider crack spreads (refining margins), operates at 98% utilization, and maintains a strong financial position with a 0.36 debt-to-equity ratio. With Q4 2025 EPS of $3.82 beating estimates and a growing dividend, analysts including Raymond James have raised price targets to $290, suggesting the refiner's strong performance is sustainable rather than cyclical.

With the Strait of Hormuz closure disrupting global energy and commodity flows, the article recommends 10 stocks positioned to benefit from supply chain shifts. These include U.S. oil producers, refiners benefiting from widened crack spreads, LNG exporters filling supply gaps, shipping companies handling longer routes, and fertilizer producers gaining from reduced competition.

U.S. gasoline prices surged to $4.02 per gallon and diesel hit $5.45, driven by Iran war disruptions at the Strait of Hormuz. Oil refiners are capitalizing on widened crack spreads (now ~$47/barrel vs. $20 pre-war), with refiner stocks posting exceptional gains. The VanEck Oil Refiners ETF (CRAK) is up 29% YTD on a 14-week winning streak, while individual refiners like Par Pacific and PBF Energy gained 50% and 41% in March respectively. Analysts raised price targets on Valero Energy, citing potential structural shifts in refining profitability.

U.S. equities retreated on Thursday as Iran rejected Washington's ceasefire proposal, sending Brent crude above $107 per barrel and Treasury yields to multi-session highs. The geopolitical impasse drove energy prices higher while gold fell on inflation concerns. The S&P 500 declined 0.7%, Nasdaq 100 fell 1%, and the VIX climbed to 26.82. Technology stocks were hammered following Alphabet's AI efficiency research, while energy stocks surged.

Energy stocks have surged since February 28 amid Iran hostilities, with oil prices volatile following geopolitical developments. The article examines three investment opportunities: Chevron (upstream), Valero Energy (refining), and Enbridge (midstream pipelines), each offering different risk-reward profiles with dividend yields ranging from 2-5.1%.

The blockade of the Strait of Hormuz, through which 25% of global seaborne oil and 20% of LNG trade flows, is creating significant ripple effects across energy markets. Rising oil prices benefit U.S. exploration and production companies, while refining crack spreads have soared above $58. The disruption also benefits LNG suppliers from alternative sources, fertilizer producers, and LNG shipping companies facing longer routes.

Delek US shares surged 8.6% today due to rising refining crack spreads and a BofA analyst raising the price target from $28 to $40. The stock has gained 55% in 2026, benefiting from increased oil prices and geopolitical tensions in the Persian Gulf that have disrupted global refining supply. U.S. refiners like Delek, which source domestic crude oil, are well-positioned to capitalize on these supply disruptions.