Oil and gas stocks are back in the spotlight as conflict between the U.S. and Iran disrupts supply routes and lifts fuel costs. With the Strait of Hormuz closed and consumers facing higher prices at the pump and the supermarket, energy producers sit at the center of this shock. Some companies could benefit from higher selling prices, while others face higher costs, policy risk, or demand pressure. This article walks through 3 large, financially stable oil and gas stocks that are closely exposed to the latest news, outlining key factors to consider for further research and areas where additional caution may be appropriate.

Serica Energy (AIM:SQZ)

Overview: Serica Energy is a UK based oil and gas producer that identifies, acquires and develops offshore fields in the North Sea, selling gas, oil and natural gas liquids into the domestic market.

Operations: Serica Energy generates about US$601 million of revenue from oil and gas exploration, development, production and related activities, all from assets in the United Kingdom.

Market Cap: £884.2 million

Serica Energy sits at the crossroads of rising European energy security concerns and the latest spike in commodity prices, with its North Sea production giving investors direct exposure to higher oil and gas prices linked to the U.S. and Iran conflict. The company combines this price sensitivity with sizeable liquidity from its new US$750 million reserves based lending facilities and additional bond financing, which supports reinvestment and acquisitions. At the same time, Serica carries real risks, including UK windfall taxes, dependence on mature North Sea infrastructure and a dividend that is not fully covered by earnings or free cash flow. For investors who can weigh those trade offs carefully, the mix of upside potential and policy uncertainty makes Serica a stock worth a closer look.

Serica Energy’s pricing upside and fresh liquidity can look compelling, yet the real story sits in how those strengths stack up against taxes, infrastructure and its dividend. For more detail, see the 2 key rewards and 1 important major warning sign

Harbour Energy (LSE:HBR)

Overview: Harbour Energy is a UK based oil and gas producer that acquires, develops and operates fields across the UK, Norway, Germany, Mexico, Argentina, North Africa and Southeast Asia, while also building a carbon capture and storage portfolio and running related trading and decommissioning activities.

Operations: Harbour Energy generates most of its revenue from Norway at about US$4.3b and the UK at about US$3.9b, with smaller contributions from Germany, Argentina, Mexico, North Africa and Southeast Asia plus corporate items and group eliminations.

Market Cap: £4.2b

Harbour Energy sits right in the path of today’s oil and gas price shock, with a large scale portfolio, roughly 40% of production linked to Brent and 40% to European gas, and production guidance of 480 to 500 kboepd for 2026. The stock screens as inexpensive on several measures, with current pricing well below one estimate of fair value and future cash flow value per share, yet the company is still loss making, has a dividend that is not covered by earnings and carries higher funding risk due to reliance on external borrowing. If you are looking for a large independent producer with potential earnings recovery but real balance sheet and dividend questions, Harbour Energy deserves closer attention later in this list.

Harbour Energy’s low pricing and wide global footprint could be masking a much bigger story around future cash generation and funding risk. Get the full picture in the analysis report for Harbour Energy

Transocean (RIG)

Overview: Transocean is a Switzerland based offshore drilling contractor that supplies ultra deepwater and harsh environment rigs, equipment and crews to oil and gas companies that want to drill wells in difficult offshore basins.

Operations: Transocean generates about US$4.1b of revenue from contract drilling services, with around US$1.7b from the U.S., US$912 million from Brazil, US$659 million from Norway and US$895 million from other countries.

Market Cap: US$5.9b

Transocean provides direct exposure to higher oil prices that may be triggered by the U.S. and Iran conflict, because its fleet of ultra deepwater and harsh environment rigs can become more attractive when producers look offshore to secure new barrels. The stock has already responded to stronger results, with Q1 2026 swinging to a US$71 million profit and the price rising about 23% over six months. However, it still carries a sizeable debt load, past shareholder dilution and earnings that analysts do not agree on. A US$7b contract backlog with major oil companies and fresh multi year deals in Norway and Australia sit on one side of the scale, while refinancing, cost inflation and day rate volatility sit on the other, making Transocean a high impact stock that may warrant careful study.

Transocean’s US$7b backlog and recent swing to a Q1 2026 profit suggest a story that many investors may be only half seeing. For a fuller view of the risk reward picture, see the 2 key rewards and 2 important warning signs

The three stocks in this article are only a starting point, and the full Energy Sector (Oil & Gas Producers) screener surfaces 42 more oil and gas producers with equally compelling narratives for you to review. Use Simply Wall St to identify, filter and analyze the specific catalysts and risk stories that matter to you so you can focus on the highest conviction opportunities in this sector.

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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.