Why Occidental Petroleum Stock Jumped on Monday

By Eric Volkman – Mar 2, 2026 at 6:55PM ESTKey PointsFlare-ups in the Middle East often push oil prices upward.Since price is always a factor in Occidental's performance, investors bought into the stock.The price of oil is subject to many factors, and it can rise precipitously in times of emergency or stress. The start of the war with Iran is one of those times; with concern growing that the conflict will lead to a leap in prices, investors cautiously bought into oil stocks on Monday. Among the beneficiaries of this trend was veteran black gold specialist Occidental Petroleum (OXY +2.11%), whose shares rose by more than 2% during that trading session. A war footing It's important to note here that, as of late afternoon Monday, no serious damage to oil production capacity in Iran -- or elsewhere in its region -- has yet been reported. Image source: Getty Images. That said, the potential for that to happen is significant, and growing each day the conflict stretches out. And it's not only production that could be hampered amid the fighting -- it's very possible the Straits of Hormuz will become a bottleneck for oil supplies, for example, or the supply might be restricted in a variety of ways. On Sunday, in something of a surprise move, the Organization of the Petroleum Exporting Countries (OPEC) announced an upcoming increase in its collective oil production. This caught some industry participants and analysts off guard, though it makes sense as a measure that could dampen any high price jumps in the commodity linked to the war. ExpandNYSE: OXYOccidental PetroleumToday's Change(2.11%) $1.12Current Price$54.20Key Data PointsMarket Cap$52BDay's Range$53.33 - $56.4852wk Range$34.78 - $56.48Volume1.4MAvg Vol11MGross Margin31.94%Dividend Yield1.81% Rising tide In a geopolitical situation, it's very likely prices will rise at least somewhat; with Occidental's 2% lift -- similar to the gains other oil majors saw on Monday -- it seems the market as a whole doesn't expect a precipitous advance. Either way, any increases will filter down into the fundamentals of incumbents like Occidental, and we can expect that to continue if the conflict intensifies.Read NextMar 2, 2026 •By Matt DiLalloAnalysts Predict The Iran Conflict Could Drive Oil to $100 a Barrel. Here's Why it Could be a Short Stay.Mar 1, 2026 •By Brett Schafer2 No-Brainer Energy Stocks to Buy Right NowMar 1, 2026 •By Courtney CarlsenOccidental Petroleum: Buy, Sell, or Hold?Feb 26, 2026 •By Reuben Gregg BrewerOccidental Petroleum Stock Rocketed More Than 10% in January (but the Big Move Came in February)Feb 20, 2026 •By Matt DiLalloHow This Buzzword Helped Occidental Petroleum Overcome Lower Oil Prices to Deliver Strong Fourth-Quarter ResultsFeb 19, 2026 •By Joe TenebrusoWhy Occidental Stock Popped TodayAbout the AuthorEric Volkman is a contributing Motley Fool finance and stock market analyst. Previously, Eric was an equities analyst at European investment bank Raiffeisen Capital and Investment. He’s also been a freelance finance writer since 1995. He studied at Susquehanna University.TMFVolkmanStocks MentionedOccidental PetroleumNYSE: OXY$54.20(+2.11%)+$1.12*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.