What Happened?
A number of stocks jumped in the afternoon session after 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 are anticipating that higher global oil prices will be reflected in stronger earnings for oil and gas companies.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- U.S. Shale E&P company Crescent Energy (NYSE: CRGY) jumped 4.6%. Is now the time to buy Crescent Energy? Access our full analysis report here, it’s free.
- Oilfield Services company Patterson-UTI (NASDAQ: PTEN) jumped 2.6%. Is now the time to buy Patterson-UTI? Access our full analysis report here, it’s free.
- Mixed or Offshore Upstream E&P company Talos Energy (NYSE: TALO) jumped 5%. Is now the time to buy Talos Energy? Access our full analysis report here, it’s free.
- U.S. Shale E&P company HighPeak Energy (NASDAQ: HPK) jumped 10.6%. Is now the time to buy HighPeak Energy? Access our full analysis report here, it’s free.
- Mixed or Offshore Upstream E&P company Kosmos Energy (NYSE: KOS) jumped 8.7%. Is now the time to buy Kosmos Energy? Access our full analysis report here, it’s free.
Zooming In On HighPeak Energy (HPK)
HighPeak Energy’s shares are extremely volatile and have had 69 moves greater than 5% over the last year. But moves this big are rare even for HighPeak Energy and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 7.4% on the news that signals of de-escalation in the U.S.-Iran conflict caused oil prices to fall, removing a key support for the energy sector. The drop in crude prices came after President Trump suggested the U.S. could wind down its military campaign against Iran within weeks, and Iran's president stated a readiness to end the war. This news unwound the "war premium" that had boosted oil stocks during the conflict. As a result, West Texas Intermediate (WTI) crude oil fell about 2% to trade below $101 a barrel. The decline was also fueled by traders taking profits after a strong run in energy stocks.
HighPeak Energy is up 53.7% since the beginning of the year, but at $6.87 per share, it is still trading 47% below its 52-week high of $12.97 from April 2025. Investors who bought $1,000 worth of HighPeak Energy’s shares 5 years ago would now be looking at an investment worth $1,033.
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