Chevron is likely to be a big beneficiary if tensions between Iran and the U.S. remain elevated and the Strait of Hormuz is closed once again, according to Bank of America. The bank has a buy rating on the oil and gas name. It also has a $210 price target on shares, suggesting 19% upside from Wednesday’s close. “CVX is our preferred way to play [increased oil prices] … integrateds are pricing in < $70/bbl LT Brent, which we see as a particularly attractive entry point, analyst Jean Ann Salisbury said Wednesday in a note to clients. “We prefer CVX to XOM given its Venezuela presence, lack of Middle East exposure, and higher earnings torque to the shifts upward in prices in 2026/27.” Shares of Chevron are up roughly 15% year to date as the Iran war sent crude prices skyrocketing. At the core of the conflict is control of the Strait of Hormuz, a waterway that controls roughly 20% of global oil shipments . CVX YTD mountain CVX year to date Brent futures have surged 26% in 2026, along with West Texas Intermediate futures. They also popped earlier this week after President Donald Trump announced the ceasefire between the U.S. and Iran was “over.” They dipped slightly on Thursday, but BofA thinks prices will stay elevated as the U.S. continues to brush off efforts to settle its campaign against Iran. “Medium term restocking demand should support a$70/bbl level, assuming that the strait reopening is not essentially flawless from here, which seems like a safe assumption (at least as of today),” Salisbury wrote. And while there remains a large amount of announced crude potentially coming out of the Middle East in the near future, the delivery of those shipments depends largely on Iran tensions relaxing, “which looks less likely,” the analyst added. Bank of America’s rating falls in line with consensus on Wall Street. Of the 26 analysts covering Chevron, 21 have a buy or strong buy rating on the stock.
