Battalion Oil Stock More Than Doubles — Retail Sees Hormuz Strait Closure As The ‘Worst Case Scenario’ For Oil

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Iran’s Revolutionary Guards commander has reportedly said that the Strait of Hormuz is closed, The Guardian reported. citing Iranian state media.

  • One Stocktwits user said that closing of Hormuz strait was the worst case scenario for oil. 
  • The strait serves as the world’s most important oil export route, linking major Gulf oil producing nations. 
  • Analysts at UBS expect the rise in crude oil prices to reverse at least partially in their base case scenario, according to a note. 

Battalion Oil (BATL) shares jumped 123% on Monday, and saw volatility halts amid rising oil prices due to the ongoing war among U.S., Israel, and Iran.

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At the time of writing stock was up 1.6% to $11.96 in extended hours of trading after closing 113% higher. 

What Is Retail Thinking?

On Stocktwits, retail sentiment around BATL stock trended in ‘extremely bullish’ territory amid ‘extremely high’ message volumes.

One user on Stocktwits said that closing of the Strait of Hormuz was the ‘worst case scenario’ for oil. 

One bullish user, however, predicted that the stock will open gap up on Tuesday. 

Another user predicted that the stock rise will continue if the price prediction of oil per barrel goes $80+.

Strait Of Hormuz Closed

Iran’s Revolutionary Guards commander has said that the Strait of Hormuz, the world’s most critical oil route, is closed and Iran will set any ship trying to pass on fire, The Guardian reported, citing Iranian state media. 

Reuters earlier reported that an official from the European Union’s naval mission Aspides said that vessels have been receiving VHF transmission from Iran’s Revolutionary Guards saying “no ship is allowed to pass the Strait of Hormuz.”

The strait serves as the world’s most important oil export route, linking major Gulf oil producers—including Saudi Arabia, Iran, Iraq, and the United Arab Emirates—to the Gulf of Oman and the Arabian Sea.

UBS Commentary On Oil

Analysts at UBS expect the rise in crude oil prices to reverse at least partially in their base case scenario, according to a note, as per TheFly. 

“Markets may be volatile over the coming weeks but would likely thereafter start to refocus on positive global economic fundamentals. This would be in line with the impact of most geopolitical shocks in recent history,” UBS told investors. 

Shares of BATL have risen 682% over the past 12 months. 

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