Why ExxonMobil, Transocean, SLB, and Other Oil Stocks Surged This Week

Many oil- and gas-related stocks rose this past week as traders rotated into companies that stand to profit from higher energy prices.

Here's how some of the top energy stocks performed:

• ExxonMobil (NYSE: XOM), up 7%
• Transocean (NYSE: RIG), up 11%
• SLB (NYSE: SLB), up 15%

Escalating tensions in the Middle East

Following strikes by the U.S. and Israeli militaries, Iran has moved to close the Strait of Hormuz to commercial shipping. With roughly 20% of global oil and liquefied natural gas (LNG) shipments unable to traverse this key waterway, fears of supply shortages are mounting.

Oil and gas prices are up sharply since the strikes began in late February. They could continue to head higher if conflict intensifies.

The Trump Administration has said that it's attempting to negotiate an end to the hostilities. Yet the U.S. is also reportedly considering launching ground operations in Iran. That would mark a significant escalation and likely prolongment of the conflict.

These businesses benefit from higher oil and gas prices

ExxonMobil is one of the biggest and best-run energy companies in the world today, with operations spanning exploration, production, and refining of oil and natural gas.

Transocean is a leader in offshore drilling for oil and gas wells. It specializes in complex, ultra-deepwater operations.

SLB, formerly known as Schlumberger, provides a wide range of services to the oil and gas industry, with operations in more than 100 countries.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool recommends Transocean. The Motley Fool has a disclosure policy.