Occidental Petroleum's stock rose 9% amid Middle East tensions driving oil above $100, as the company boosts cash flow and shareholder returns despite higher spending.

Occidental Petroleum’s stock rose 9% amid escalating Middle East tensions, though it lags behind crude prices, which surged past $100 per barrel due to supply fears in the Strait of Hormuz. While oil futures suggest prices may drop to the mid-to-low $80s if tensions ease, the U.S. and IEA are preparing emergency stockpile releases to stabilize markets. Occidental, spending $5.7 billion on capital projects—$550 million less than last year—expects over $1.2 billion in additional free cash flow at last year’s oil prices, with potential for more gains if prices stay high. The company’s financial strength and cost discipline support continued shareholder returns and resilience regardless of oil price swings.