Price Shock Is Boon for Oil Stocks, Curse for Renewables

The war in the Middle East is causing unprecedented turmoil in oil markets, supercharging shares in European energy companies that are expected to benefit from higher prices and turning other stocks into laggards.

Much depends on how the Iran conflict develops, but investors have so far flocked to companies that are in a position to capitalize on higher refining margins and product prices in Europe. The Stoxx 600 energy sector index has climbed 6% since the war broke out.