Chevron (CVX) shares surged 10.8% in March, driven by a dramatic spike in crude oil prices amid escalating tensions from the ongoing war with Iran. Brent crude soared 43% for the month, closing near $104 per barrel, marking its largest monthly gain since 2020. The conflict has severely disrupted shipping through the Strait of Hormuz, impacting 20% of global oil and LNG supplies, which is expected to significantly boost Chevron’s earnings—every $1 increase in Brent translates to an additional $600 million in annualized earnings for the company.

In addition to the favorable oil price environment, Chevron is nearing a deal with Venezuela to enhance its production capabilities, potentially unlocking significant reserves. Furthermore, the company has partnered with Engine No. 1 and Microsoft to develop a $7 billion gas-fired power project, which could stabilize earnings volatility while supporting its growth profile.

Given these developments, Chevron’s stock remains an attractive buy, with potential for further upside, especially if geopolitical tensions persist and oil prices remain elevated.

Source: fool.com