What Happened?
Shares of drilling services company Nabors Industries (NYSE: NBR) jumped 4.1% in the morning session after news of a planned U.S. blockade of the Strait of Hormuz sparked concerns over significant oil supply disruptions.
The potential military action in the critical shipping lane for oil exports sent crude prices soaring. Both Brent crude, the international benchmark, and U.S. West Texas Intermediate crude jumped over 7%, climbing above $102 a barrel. This surge was in direct response to the U.S. plans to block ships to and from Iran via the Strait, a move that could severely restrict oil exports and tighten global supplies. Consequently, investors flocked to energy stocks, anticipating that sustained higher oil prices would translate into increased revenues and profitability for producers.
After the initial pop the shares cooled down to $83.78, up 4.4% from previous close.
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What Is The Market Telling Us
Nabors Industries’s shares are extremely volatile and have had 56 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 3.6% on the news that President Trump held a press conference reaffirming his deadline for Iran to reopen the Strait of Hormuz or face strikes on its power plants and bridges. Crude oil prices rose, pulling energy equities higher as markets priced in the risk of prolonged conflict. Iran's rejection of a proposed 45-day ceasefire deepened that anxiety.
Nabors Industries is up 51.2% since the beginning of the year, and at $83.78 per share, it is trading close to its 52-week high of $89.60 from March 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Nabors Industries’s shares 5 years ago would now be looking at only $974.14.
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