What Happened?

A number of stocks jumped in the morning session after the price of crude oil climbed due to escalating geopolitical tensions in the Middle East and persistent supply concerns. West Texas Intermediate (WTI) crude, the U.S. benchmark, rose to over $81 per barrel, while Brent crude, the international standard, neared $90. The gains follow reports of stalled ceasefire talks and a U.S. threat to maintain an indefinite naval blockade on Iran. These developments heighten fears of a wider conflict that could disrupt supply, particularly through the Strait of Hormuz, a critical chokepoint where about one-fifth of the global oil supply transits daily. While data from the U.S. Energy Information Administration showed a significant weekly build in commercial crude stocks, the market appears more focused on the substantial geopolitical risks. This has also kept average U.S. gasoline prices above $4 per gallon, reflecting the volatility in energy markets.

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:

• Oilfield Services company Valaris (NYSE: VAL) jumped 3.4%. Is now the time to buy Valaris? Access our full analysis report here, it’s free.
• Infrastructure company Kodiak Gas Services (NYSE: KGS) jumped 4.1%. Is now the time to buy Kodiak Gas Services? Access our full analysis report here, it’s free.
• Mixed or Offshore Upstream E&P company SM Energy (NYSE: SM) jumped 4.9%. Is now the time to buy SM Energy? Access our full analysis report here, it’s free.
• Oilfield Services company Patterson-UTI (NASDAQ: PTEN) jumped 3.9%. Is now the time to buy Patterson-UTI? Access our full analysis report here, it’s free.
• Mixed or Offshore Upstream E&P company Solaris Energy Infrastructure (NYSE: SEI) jumped 5.2%. Is now the time to buy Solaris Energy Infrastructure? Access our full analysis report here, it’s free.

Zooming In On Solaris Energy Infrastructure (SEI)

Solaris Energy Infrastructure’s shares are extremely volatile and have had 65 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 biggest move we wrote about over the last year was 2 months ago when the stock dropped 7.8% on the news that energy stocks pulled back despite oil prices remaining structurally elevated, as WTI crude fell 1.76% to $91.40 a barrel (still more than 40% above year-ago levels). The president said US-Iran talks were "progressing well" and reiterated he would be "honored" to meet Iran's supreme leader to make a deal, raising the possibility that Strait of Hormuz disruptions could ease faster than the market had priced. Energy stocks trade a risk premium derived from supply scarcity. If a ceasefire materializes, that premium unwinds sharply. The stronger-than-expected jobs report added a second layer: higher interest rates increase the cost of capital for exploration and production companies carrying significant debt, compressing returns on future investment. Investors reduced exposure ahead of any deal announcement rather than waiting to react.

Solaris Energy Infrastructure is up 24.1% since the beginning of the year, but at $62.37 per share, it is still trading 22.5% below its 52-week high of $80.46 from June 2026. Investors who bought $1,000 worth of Solaris Energy Infrastructure’s shares 5 years ago would now be looking at an investment worth $8,283.

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