The continuing conflict with Iran has put the spotlight on oil and natural gas markets as the fighting disrupts supply and transportation in the immediate term.
But even if the war were to end today, there remain for these energy commodities and the companies that produce them.
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Amin Nasser, the CEO of Saudi Aramco, the biggest oil company in the world, recently said the conflict has cost the world around 1 billion barrels of oil, and the market may not return to normal until 2027.
“This observation is critical for reassessing the long-term risks in the energy sector and the potential opportunities for oil producers,” says Julia Khandoshko, CEO at the European broker Mind Money. “Even if trade routes return to normal, it will take a pretty long time for energy markets to stabilize.”
Angelo DeCandia, professor of business at Touro University, concurs.”Even when the war finally ends, the damage to the energy infrastructure may take several years to fix, thus impacting supply for a long time to come,” he says. “The current state of things has increased the volatility, which can be a good opportunity for those investors seeking outsized gains. But they should never forget that whatever goes up must, at some point, come down and that energy stocks should always be part of a well-diversified plan and portfolio.”
Still, he points out that equity investors can benefit from successful energy companies either with long-term capital gains or dividend distributions, in addition to the oil and gas companies can offer.
With that in mind, here’s a look at seven top oil and gas stocks to consider:
| Stock | Key advantage | Forward dividend yield |
| Occidental Petroleum Corp. (ticker: ) | Low-cost production in the Permian Basin | 1.7% |
| Chevron Corp. () | Positioned to benefit from regime change in Venezuela | 3.6% |
| APA Corp. () | Focused on dividend payments and debt reduction | 2.5% |
| Valero Energy Corp. () | Can process heavy, sour crude from Venezuela | 1.9% |
| Equinor ASA () | Norwegian state ownership provides stability | 3.8% |
| Cheniere Energy Inc. () | Poised to benefit from U.S. position as major LNG exporter | 0.9% |
| EQT Corp. () | Benefits from increased LNG exports and energy demand from data centers | 1.2% |
Occidental Petroleum Corp. ()
The Iran war and the supply deficit that can’t be fully offset in other regions create opportunities for oil producers that can rapidly increase production, Khandoshko says.
One of these companies is Occidental Petroleum, which is backed by Berkshire Hathaway Inc. (, ) and has a competitive advantage with low-cost production in the prolific Permian Basin, she says.
As of the end of March, Occidental was Berkshire’s sixth-largest holding by percentage of its portfolio. With a stake of more than 26%, Berkshire’s investment in OXY made up 6.6% of the investment company’s $263 billion portfolio.
Retired Berkshire CEO and famous investor “investment in OXY, and his successor Greg Abel’s re-endorsement thereof, demonstrates his conviction in the long-term value of energy assets amid what seems to be protracted global energy supply shortages,” Khandoshko says.
Chevron Corp. ()
Buffett may have retired, but his legacy as one of the world’s most famous investors is likely to live on and have an outsized influence on where people put their money.
As of the end of March, Chevron was Berkshire’s fifth-largest holding by percentage of its portfolio. Even though Berkshire sold about 45 million CVX shares in the first quarter, Chevron still represents about 7% of the investment company’s portfolio.
Chevron has major holdings abroad and recently agreed to an asset swap with Venezuelan oil company PDVSA that will expand Chevron’s heavy oil position in two joint ventures.
After the U.S. military in January, Chevron appears to be one of the oil and gas companies that could benefit from increased U.S. access to the South American nation, but repairing and developing its oil sector will take decades, no matter which companies are involved.
APA Corp. ()
DeCandia points to this oil and gas developer and producer, which has operations in the U.S., the U.K., Egypt and Suriname.
The company has boasted strong returns over the past year, rising more than 140%.
Despite the robust performance, the company’s price-to-earnings (P/E) ratio of 9.4 remains attractive, and the company has a decent dividend yield (2.5%), DeCandia notes.
In recent years, oil and gas companies have returned more money in the form of and share repurchases to investors who in the past got fed up with overzealous drilling, even if it was at diminishing returns during periods of lower oil prices.
In the first quarter, APA returned $88 million to shareholders through dividends.
APA has also been working to reduce debt. Through April, the company repaid $634 million in near-term bond maturities. That repayment and the debt reduction actions last year are expected to reduce annual interest expenses by more than $60 million in 2026.
Valero Energy Corp. ()
Turning from oil and gas producers, known as upstream companies, this refining company is more of a downstream play in the energy industry.
Valero manufactures and markets transportation fuels and other energy products. Its refining operations turn crude oil into petroleum products such as gasoline, propane and asphalt.
Even though the stock is trading , it still has a reasonable P/E ratio (18.9), says DeCandia, who also points to Valero’s decent dividend yield around 2%.
Valero also may end up benefiting from a more open Venezuelan oil industry, as the Gulf Coast refiner is capable of dealing with the type of heavy, sour crude that comes from the South American nation.
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Equinor ASA ()
Vince Stanzione, CEO at First Information, a publisher of educational materials related to financial spread betting and derivatives trading, likes this Norwegian energy company, which may be unfamiliar to many American investors.
Previously known as Statoil, the company operates in oil and gas, renewables, offshore wind and hydrogen.
“But make no mistake, it’s still very much an oil and gas major at its core, which is why I like it,” Stanzione says.
The company is majority-owned by Norway. The Scandinavian country’s government pension fund also owns another chunk, which Stanzione says adds stability to Equinor.
“Norway has a good reputation and has stepped up to sell oil and gas where Russia was sanctioned in the E.U. and U.K.,” he says.
Cheniere Energy Inc. ()
Within the natural gas space, a super-chilled version of the fuel, or , has helped transform the industry into a global market.
That’s because natural gas in its liquid form is much easier and more economical to transport by ship, opening up Asia and Europe to natural gas produced cheaply in the U.S.
The U.S. is the biggest natural gas-producing country in the world and has increased in importance as an exporter of LNG, especially as Europe tries to free itself from Russian energy amid the war in Ukraine.
Now, the U.S. conflict with Iran is crimping LNG supply from the Middle East, with damage to infrastructure in major exporter Qatar as well as a , a major chokepoint for energy transport.
Cheniere Energy is a key beneficiary of the LNG export trend and has built one of the largest natural gas liquefaction platforms in the world, with facilities in Louisiana and Texas. The company is the biggest LNG producer in the U.S. and the second-biggest operator in the world.
EQT Corp. ()
This top U.S. natural gas player, with operations in the Marcellus and Utica shales of the Appalachian Basin, is also benefiting from increased LNG exports to Europe and Asia as well as increased U.S. demand from data centers and the broader expansion of U.S. power production.
Demand from that power the computers at the core of AI is expected to meaningfully increase overall U.S. electricity demand. Combined with the electrification of many sectors of the economy, including transportation, that demand is expected to boost electricity after years of relatively flat usage.
While will play a part, reactors take a long time to develop and permit. Natural gas is expected to be the main bridge fuel between coal and renewables, making the commodity relevant for decades and leaving companies like EQT in a strong position.
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Update 05/19/26: This story was previously published at an earlier date and has been updated with new information.
