Geopolitical shocks in the Strait of Hormuz, surging freight costs, and shifting trade routes are reshaping the risk profile of energy and shipping stocks exposed to this news. For some companies, constrained oil flows and tight tanker availability can support pricing power and earnings resilience. For others, weaker chemical demand and sharply higher container rates threaten margins and cash flow. This article walks through three stocks tied to these supply chain fault lines, highlighting one that could benefit and two that may face tougher conditions, so you can decide whether they deserve a closer look or a spot on your watchlist.

Occidental Petroleum (OXY)

Overview: Occidental Petroleum is a US based energy company that primarily explores for and produces oil, natural gas liquids, and natural gas, while also running a midstream and marketing business that moves and sells these products globally. It also owns a chemicals arm that supplies materials like PVC and caustic soda into industrial and construction supply chains.

Operations: Occidental generates the bulk of its roughly US$21.1b in revenue from Oil and Gas at about US$20.2b, with its Midstream and Marketing segment contributing about US$1.5b and most sales coming from the United States at about US$17.7b, complemented by about US$4.2b from international markets.

Market Cap: US$52.6b

Occidental Petroleum sits at the center of the current supply shock story, with a large upstream portfolio that can benefit directly from higher crude prices as Strait of Hormuz disruptions tighten seaborne flows. Analysts highlight factors such as resilient cash flows, cost efficiency improvements and a meaningful effort to reduce debt, while Berkshire Hathaway’s backing keeps attention on its long term prospects. The company still carries a high P/E multiple, softer recent margins and meaningful exposure to oil price swings and chemicals cycles, so earnings disappointments or weaker commodity conditions could negatively affect performance. These elements together shape views on valuation, balance sheet risk and long term growth potential.

Occidental Petroleum’s mix of oil exposure, chemicals and Berkshire interest has investors debating whether risk or reward is really in the driver’s seat, so take a moment to weigh the 3 key rewards and 2 important warning signs

International Seaways (INSW)

Overview: International Seaways is a New York based shipping company that owns and operates a fleet of crude oil and product tankers, moving everything from unrefined crude to refined fuels and edible oils for global oil companies, traders, refiners, and government customers.

Operations: International Seaways generates its roughly US$985.4m in revenue primarily from Crude Tankers at about US$543.1m and Product Carriers at about US$442.3m.

Market Cap: US$4.4b

International Seaways sits squarely in the firing line of current Strait of Hormuz disruptions and softer tanker sentiment, with analysts flagging that weaker chemical and oil flows and pressure on freight rates could weigh on revenue just as earnings are forecast to decline and margins are expected to compress from very high levels over the next few years. At the same time, the stock pairs strong profitability and a high dividend yield with funding that relies entirely on external sources and a payout that is not well covered by free cash flow. Recent index exclusion, insider selling and a fresh US$200m equity offering all raise questions about how sustainable recent strength really is. Investors watching tanker exposed stocks under geopolitical stress may want to examine whether International Seaways is now pricing in more good news than its risk profile justifies.

Rising tanker stress, rich dividends and fresh equity funding put International Seaways in a tight spot, so weigh how much optimism is already priced in by reviewing the 3 key rewards and 4 important warning signs (2 are major!)

LyondellBasell Industries (LYB)

Overview: LyondellBasell Industries is a global chemicals producer that turns basic hydrocarbons into plastics, fuels, and specialty materials used in everyday products such as food packaging, car parts, furniture, and paints.

Operations: LyondellBasell generates most of its roughly US$34.7b in revenue from its Olefins and Polyolefins segments in the Americas at about US$9.8b and Europe, Asia and International at about US$10.1b, along with Intermediates & Derivatives at about US$8.8b, with smaller contributions from Advanced Polymer Solutions at about US$3.4b and Technology at about US$0.5b.

Market Cap: US$18.2b

LyondellBasell Industries is directly exposed to current shipping and Middle East disruptions, with higher freight and feedstock costs squeezing a business that is already reporting losses, weak dividend coverage, and interest costs that earnings do not comfortably support. At the same time, the stock screens as heavily discounted to estimated fair value and carries a roughly 4.9% yield, which has drawn bullish analyst ratings and media attention. Much of the investment case depends on future efficiency gains, recycling projects, and a potential profit recovery in a slow growing sector. Investors weighing whether current enthusiasm is running ahead of fundamentals may want to consider how sensitive LyondellBasell is to prolonged tariff volatility, export friction, and any delay in a potential turnaround.

High freight costs, weak dividend coverage, and interest pressure suggest LyondellBasell’s generous yield might be masking deeper balance sheet stress. Before sentiment shifts, unpack the full risk story in the LyondellBasell Industries financial health report

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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.