The sudden prospect of a US and Iran framework peace deal, along with plans to reopen the Strait of Hormuz, has rapidly reshaped expectations for energy sector stocks. Oil prices have already pulled back from recent highs, yet supply bottlenecks, infrastructure checks and the long process of refilling emergency reserves keep uncertainty high. For investors, this mix of easing geopolitical risk and persistent supply constraints creates a specific combination of potential opportunity and risk. This article highlights 3 stocks from our Energy Sector Stocks screener that are closely exposed to this news and explains how the catalysts might affect each one.

Gulf Keystone Petroleum (LSE:GKP)

Overview: Gulf Keystone Petroleum is an oil and gas explorer and producer focused on the Shaikan Field in the Kurdistan Region of Iraq, where it develops and operates crude production while also providing technical services such as geology, geophysics and engineering support from its base in Pembroke, Bermuda.

Operations: Gulf Keystone Petroleum generates essentially all of its US$193.1 million in revenue from exploration and production of oil and gas in the Kurdistan Region of Iraq.

Market Cap: £369.7 million

Gulf Keystone Petroleum stands out because it sits on a single large onshore asset that directly links an investment in the company to Middle Eastern crude prices at a time when a potential US and Iran peace framework and reopening of the Strait of Hormuz could reshape regional flows. Recent commentary points to production readiness and healthy local pricing, alongside new water handling projects and low operating costs that support improving margins and a 5% yield. However, everything hinges on security conditions, export access and payments from regional authorities. With earnings recently positive and exports, drilling plans and dividend sustainability all in focus, investors watching Gulf Keystone now are observing a situation with both significant potential and clearly high risks that could change quickly as the region stabilizes or tensions flare again.

Gulf Keystone Petroleum’s single major field, positive earnings and 5% yield point to a potentially underappreciated story tied to Middle Eastern pricing, but the real twist sits inside the 3 key rewards and 3 important warning signs

Cactus (WHD)

Overview: Cactus designs, manufactures, sells, and rents wellheads, pressure control equipment, and flexible spoolable pipe that oil and gas producers use across drilling, completion, and production, with a growing footprint that now reaches from US shale basins into the Middle East and other international markets.

Operations: Cactus generates about US$827.1 million of revenue from its Pressure Control segment and US$365.6 million from Spoolable Technologies, partly offset by a US$5.6 million intersegment elimination.

Market Cap: US$4.7b

Cactus stock is closely linked to activity levels at oil and gas producers, so the prospect of a US and Iran framework peace deal and a gradual reopening of the Strait of Hormuz matters directly for this business. As Middle Eastern logistics ease and producers focus on longer term energy security, Cactus is positioned with pressure control gear, FlexSteel spoolable pipe and recent acquisitions that expand its reach into exactly those regions. At the same time, investors have to weigh margin pressure, a high P/E multiple and recent insider selling against forecasts of strong earnings growth and analyst confidence in both segments. How those trade offs compare with the current valuation is where the core opportunity or risk sits for Cactus.

Growth expectations for Cactus look punchy, yet that high P/E might be masking where the real upside and pressure points sit. Scan the analyst forecasts for Cactus and see what the market could be missing next.

PetroTal (TSX:TAL)

Overview: PetroTal is an oil and gas producer focused on acquiring, developing, and operating its 100% owned Bretaña Norte field in Block 95 in northern Peru, supplying Brent linked crude from a single Amazon basin asset and run from its headquarters in Houston.

Operations: PetroTal generates all of its US$240.5 million in revenue from oil and gas exploration and production in Peru.

Market Cap: CA$497.0 million

Investors looking at PetroTal are getting exposure to Brent linked oil from a pure play Peruvian field, at a time when higher pricing from supply constraints could matter more than volume growth. The stock screens as good value on P/E versus both the Canadian market and oil and gas peers. However, recent production cuts, weaker margins and a shorter tenured management team underline execution and funding risks. With Q1 2026 production at 14,907 bopd and earnings still positive despite lower volumes, PetroTal offers a mix of income potential, operating leverage to oil prices and country and operational risk that may warrant closer inspection for anyone using this Energy Sector Stocks screener as a hunting ground.

PetroTal’s mix of Brent linked pricing, income potential and a single focused Peruvian field may be masking something investors have not fully priced in yet. See the 3 key rewards and 1 important warning sign and the one factor that could flip the story.

The stocks in this article are just a starting point, and the full Energy Sector Stocks screener surfaces 25 more companies with equally compelling energy sector stories that you have not seen yet. Use Simply Wall St to identify, filter, and analyze the specific catalysts and narratives that matter to you so you can focus on your highest conviction opportunities.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.