What Happened?
Shares of hydraulic fracturing services provider ProFrac (NASDAQ: ACDC) jumped 6.3% 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.
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What Is The Market Telling Us
ProFrac’s shares are extremely volatile and have had 68 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 11 days ago when the stock gained 2.7% on the news that geopolitical tensions in the Middle East escalated, pushing crude oil prices sharply higher. President Trump's televised remarks signaled that the U.S. conflict with Iran could continue for several more weeks, increasing investor nervousness. This uncertainty drove West Texas Intermediate and Brent crude prices up. With supply potentially constrained, markets expected that higher global oil prices would be reflected in stronger earnings for oil and gas companies.
ProFrac is up 53.6% since the beginning of the year, but at $6.21 per share, it is still trading 41.1% below its 52-week high of $10.53 from June 2025. Investors who bought $1,000 worth of ProFrac’s shares at the IPO in May 2022 would now be looking at an investment worth $342.63.
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