Oil prices have surged as concerns over Middle East supplies mount, with Brent crude breaching $110 a barrel and U.S. West Texas Intermediate rising to about $99.
- U.S. Secretary of State Marco Rubio reportedly said on Tuesday that a peace deal with Iran seemed extremely difficult and that Washington would continue its economic pressure on Tehran until attacks on commercial ships in the Strait of Hormuz are halted.
- Elon Musk said in SpaceX’s earnings call that the real constraint on growing AI superintelligence is power and cooling infrastructure, not semiconductors, sending multiple energy stocks higher in the overnight session late Tuesday.
- Bloom Energy, NextEra Energy and Valero Energy are some of the key energy companies that are reporting Q3 results this week.
Oil and energy drew attention in the week starting Oct. 19 amid escalating tensions between the U.S. and Iran, as well as positive comments from SpaceX CEO Elon Musk, even as markets gear up for key earnings results.
U.S. Says Peace Deal With Iran Seems Extremely Difficult
Oil prices have surged as concerns over Middle East supplies mount, with Brent crude breaching $110 a barrel and U.S. West Texas Intermediate rising to about $99.
A series of recent escalations, including attacks on commercial ships near the Strait of Hormuz, Houthi missile strikes on Saudi Arabia, and Ukraine’s strike on a Russian refinery this week, stoked fears about a further constraint in fuel supplies.
U.S. Secretary of State Marco Rubio reportedly said on Tuesday that a peace deal with Iran seemed extremely difficult and that Washington would continue its economic pressure on Tehran until attacks on commercial ships in the Strait of Hormuz are halted.
Meanwhile, Iranian Foreign Minister Abbas Araghchi said that the Strait would stay closed until the U.S. accepts Tehran’s conditions, even as indirect talks between the two countries continue through Pakistan and Qatar.
Iran’s Revolutionary Guards said on Tuesday that naval mines in the Strait had stopped three tankers that were attempting to pass through the critical waterways via routes that it has deemed unauthorized.
Goldman Sachs reportedly said in a note on Tuesday that war-risk premiums from tensions in the Strait now account for about $7 of the $20 year-on-year increase in average crude freight rates. According to a CNBC report, the analyst said rising shipping costs could further widen price differences between crude grades, squeezing profit margins and hiking refined fuel prices.
Economist Peter Schiff noted in a post on X that oil was likely to climb further from $110 levels and pressure other prices. “We are still early in a major breakout in the price of oil that will substantially raise the cost of living. Plus, it’s not just energy. The price of all everyday necessities is about to soar. This is a tax hike to cover deficit spending,” he said.
The United States Oil Fund (USO) gained more than 1% overnight, while the ProShares Ultra Bloomberg Crude Oil (UCO) was up nearly 2% at the time of writing.
Energy Stocks Rally Following Musk’s Positive Comments On AI Power Infrastructure
Multiple energy companies such as Bloom Energy (BE), Constellation Energy Corporation (CEG), Oklo Inc. (OKLO), NuScale Power (SMR), and X-Energy Inc. (XE) jumped higher in the overnight session late Tuesday after Musk said that the real constraint on growing AI “superintelligence” is power and cooling infrastructure, not semiconductors.
The rocket company’s CEO said that given power, cooling, and electrical equipment infrastructure is “somewhat of a limiting factor,” SpaceX is seeking to add an additional 20 gigawatts of power-cooling infrastructure in 2027 to ensure it doesn’t constrain build-out.
Musk added that the “highly proprietary” plan would include “many different sources of power, not just gas turbines.” Beyond renewables such as solar and wind, Musk said the company would explore “every other source of power that we can obtain.”
U.S. Crude Inventories Fall Sharply
The American Petroleum Institute (API) released its latest data on U.S. crude oil inventories, noting a decrease of 4.930 million barrels for the week ended Oct. 16.
API CEO Mike Sommers reportedly told Reuters on the sidelines of an energy forum in Titusville, Pennsylvania, that U.S. refiners are already running at 95% to 100% of capacity, adding that they are delaying planned maintenance due to the rising prices.
Meanwhile, U.S. diesel prices have climbed to record levels. According to data from AAA, retail diesel prices in the country reached $6.3199, up from $3.6192 a year ago.
BE, NEE, VLO Earnings In Focus
As third-quarter earnings season is in full swing, multiple energy companies are expected to report this week.
Halliburton Co. (HAL) reported its Q3 earnings on Tuesday, posting adjusted earnings per share of $0.60 on revenue of $5.7 billion, surpassing market expectations.
Bloom Energy, NextEra Energy Inc. (NEE), and Valero Energy Corp. (VLO) are among the other companies reporting results this week.
| Company | Ticker | Earnings Date |
| Halliburton | HAL | Tue, Oct. 20 |
| NextEra Energy | NEE | Wed, Oct. 21 |
| Kinder Morgan | KMI | Wed, Oct. 21 |
| Valero Energy | VLO | Thu, Oct. 22 |
| Bloom Energy | BE | Thu, Oct. 22 |
| Schlumberger | SLB | Fri, Oct. 23 |
For updates and corrections, email newsroom[at]stocktwits[dot]com.<