JPMorgan Chase & Co. analysts recommend European oil majors like Shell Plc and TotalEnergies SE as geopolitical tensions in the Gulf threaten energy supplies. The bank argues that U.S. military strikes on Iran risk disrupting the Strait of Hormuz, a critical chokepoint for 20% of global oil and LNG flows.

Rising oil prices and a stronger dollar benefit energy firms, with JPMorgan analysts highlighting valuations that are “efficient, rather than outright expensive” during volatile times. Shell and TotalEnergies are flagged as top picks, with 17% and 11% implied upside respectively, alongside dividend yields of 4% to 6%. European energy stocks rallied Monday, with Stoltenberg and Repsol SA surging over 4%.