Mar. 2 at 5:09 PM
Bank of America lifted its price targets on Exxon Mobil and Chevron as escalating geopolitical tensions drive a higher risk premium in global crude markets.
Analyst Jean Ann Salisbury raised her target to
$151 for Exxon (from
$135) and to
$206 for Chevron (from
$188), citing a greater oil risk premium embedded in share prices following U.S. strikes on Iranian targets over the weekend.
While no major confirmed damage to core oil infrastructure has been reported, BofA warned that the key risk channel remains transit through the Strait of Hormuz. The chokepoint handles roughly 14 million barrels per day — about 14% of global oil supply — and around 20% of global LNG flows.
Brent crude jumped about
$10 per barrel to above
$82 at Sunday’s open, reflecting shipping disruption concerns. BofA expects a near-term oil impact of
$10–
$20 per barrel, though it noted the spike could prove temporary if transit resumes quickly.
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