What Happened?
A number of stocks jumped in the morning session after oil prices climbed amid geopolitical uncertainty following the U.S. rejection of a peace proposal from Iran.
West Texas Intermediate crude rose over 2.5% to around $97.89 per barrel, while Brent crude, the international benchmark, also gained more than 2.6% to approximately $104 per barrel. The price increase followed President Trump's dismissal of Iran's latest peace proposal as "TOTALLY UNACCEPTABLE!" This development heightened market concerns about the ongoing conflict. For energy producers, higher oil prices can directly translate to increased revenue and profitability, which typically drives positive investor sentiment.
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 HighPeak Energy (NASDAQ: HPK) jumped 2.8%. Is now the time to buy HighPeak Energy? Access our full analysis report here, it’s free.
- Oilfield Services company Nabors Industries (NYSE: NBR) jumped 3.1%. Is now the time to buy Nabors Industries? Access our full analysis report here, it’s free.
Zooming In On Nabors Industries (NBR)
Nabors Industries’s shares are extremely volatile and have had 52 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 12 days ago when the stock gained 6.6% on the news that it reported better-than-expected first-quarter 2026 earnings, beating both revenue and profit estimates.
The drilling services company announced a smaller-than-anticipated adjusted loss of $1.54 per share, beating the consensus estimate of a $2.03 per share loss. Revenue for the quarter grew 6.8% year on year to $786.4 million, exceeding Wall Street's expectations.
In addition to the top and bottom-line beats, Nabors reported adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $204.8 million, also ahead of forecasts. The company also improved its cash position, reducing its cash burn to $48.22 million from $77.22 million in the same period last year. These positive results, showcasing better-than-expected performance and improved cash management, appeared to drive investor optimism.
Nabors Industries is up 81.2% since the beginning of the year, and at $100.40 per share, it is trading close to its 52-week high of $105.28 from May 2026. Investors who bought $1,000 worth of Nabors Industries’s shares 5 years ago would now be looking at an investment worth $1,047.
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