Bank of America has raised price targets for Chevron and ExxonMobil as geopolitical tensions drive a higher risk premium into global crude markets. Analyst Jean Ann Salisbury increased targets to $151 for Chevron and $206 for ExxonMobil from previous levels of $135 and $188, respectively, to reflect the increased oil risk premium baked into stock prices.

These adjustments follow U.S. strikes on several targets in Iran over the weekend, which have disrupted shipping routes through the Strait of Hormuz. While no major damage to core oil infrastructure has been reported, BofA noted that the critical choke point for global energy flows has been affected. The bank highlighted that the Strait of Hormuz accounts for about 14 million barrels per day of global oil supply and 80 million tons per annum of global LNG flows.

BofA expects near-term crude impacts of $10 to $20 a barrel, though the effect could be temporary if the strait reopens quickly. The bank sees LNG and oil beta equities benefiting the most, with refiners gaining to a lesser extent. BofA also noted that OPEC+ plans to restore 206,000 barrels per day in April, though these volumes depend on safe passage through Hormuz.