What happened?
A number of stocks jumped in the afternoon session after President Donald Trump indicated he is no longer interested in reaching a deal with Iran to conclude their war, triggering a sharp jump in crude oil prices and renewed inflation concerns.
The sudden escalation in geopolitical tensions between the United States and Iran raised immediate fears of potential supply disruptions across global energy markets. Iran is a prominent oil producer, and escalating friction threatens key regional shipping routes and production infrastructure.
As benchmark crude prices climbed rapidly on the announcement, energy companies saw increased investor demand, given that higher commodity prices directly lift revenues and cash flows for oil exploration and production firms. At the same time, the price spike reignited inflation concerns on Wall Street, prompting benchmark bond yields to move higher as investors weighed the risk of persistent price pressures throughout the broader economy.
While broader equity indexes ultimately stabilized after digesting the swings, energy equities benefited significantly from the surge in oil prices sparked by the deteriorating diplomatic backdrop.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Infrastructure company Calumet jumped 2%. Is now the time to buy Calumet? Access our full analysis report here, it’s free.
- Mixed or offshore upstream E&P company Gevo jumped 6.6%. Is now the time to buy Gevo? Access our full analysis report here, it’s free.
- U.S. shale E&P company Northern Oil and Gas jumped 2.5%. Is now the time to buy Northern Oil and Gas? Access our full analysis report here, it’s free.
- Oilfield services company Borr Drilling jumped 2.8%. Is now the time to buy Borr Drilling? Access our full analysis report here, it’s free.
- Oilfield services company TETRA Technologies jumped 3%. Is now the time to buy TETRA Technologies? Access our full analysis report here, it’s free.
Zooming in on Gevo
Gevo’s shares are extremely volatile and have had 45 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 35.7% on the news that the company reported record third-quarter 2026 financial results, with sales and earnings ahead of Wall Street’s estimates. According to a company press release, Gevo reported Q3 2026 results exceeding the market’s revenue expectations, with sales up 94.2% year on year to $82.95 million. Its GAAP profit of $0.09 per share was significantly above analysts’ consensus estimates. Results were supported by $29.4 million from Canadian Clean Fuel Regulation credit sales. During the earnings call, CEO Paul Bloom stated, “The underlying earnings power of Gevo is getting stronger, giving us a significantly stronger platform from which to fund and build the next stage of growth.” The company expects further improvements in profitability as it completes debottlenecking, advances its joint venture for plant expansion, and explores additional opportunities in sustainable aviation fuel and technology licensing.
Gevo is down 8.5% since the beginning of the year, and at $1.89 per share, it is trading 32.1% below its 52-week high of $2.78 from March 2026. Investors who bought $1,000 worth of Gevo’s shares 5 years ago would now be looking at only $249.34.
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