The U.S.-Iran conflict has exacerbated a major energy crisis, effectively closing the Strait of Hormuz, threatening a corridor that normally transports about a third of the world’s marine oil and about a fifth of the world’s LNG.
The Middle East conflict is raging hardest in Asia, where countries like China, India and Thailand face rising oil costs and fears of renewed energy insecurity as cargoes are delayed or turned back and priced at a premium.
Recent energy spikes and the risk of a protracted conflict are now feeding directly into currency markets, as the chance of a serious supply shock in the Gulf looms with each new headline. JP Morgan responded more positively about top European companies, boosting the two high-yielding oil stocks on the view that their global production, underlying reserve assets, and balanced portfolios stand to benefit.
Based on that demand, these two high-yielding names now sit at the center of the story, offering today’s earnings and potential upside if prices hold steady or rise again as the U.S.-Iran conflict escalates. Let’s dive in.
Eni SpA (E) is an integrated energy group headquartered in Rome, with expansion into oil, gas, chemicals, and low carbon solutions. Eni’s equity is around $78.1 billion and offers an annual dividend of $1.67 per share, which translates to a yield of approximately 3.5%.
Eni is trading near $46.79 with a year-to-date (YTD) gain of nearly 23.3% and a 52-week advance of nearly 66.5%.
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That leaves shares at 13.6x trailing earnings and 1.29x book value, both below the 15.9x and 1.82x sector medians, indicating the stock is still trading at a clear discount.
Eni, Anaergia (ANRGF), and CREvolution recently announced a new platform designed to measure the demand for renewable fuels such as biodiesel and sustainable aviation fuel, with the first model at the Eni Gela biorefinery.
Eni’s latest financials also speak to the cash generation story. The fourth-quarter 2025 report, released in late February 2026, showed ADR adjusted earnings of $0.87 versus the consensus estimate of $0.78, a surprise of around 11.5% indicating better-than-expected profitability in a challenging environment.
That explains quarterly revenue of nearly $24.4 billion, with sales up nearly 1.8% year-over-year (YoY), even as reported net income came in at nearly $105 million, down sharply from last year.
This earnings report sets the stage for the next catalyst, as Eni is expected to report first quarter 2026 numbers on April 23, with the street looking for around $0.92 per ADR.
Eni currently has a consensus “moderate buy” rating from 18 analysts, with an average target price of $41.75, implying a downside of about 10.8% from its last price.
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TotalEnergies SE (TTE) is a $187.8 billion French integrated multi-energy company based in Paris active in oil, gas, chemicals, renewables and power. They offer a pre-annual dividend of about $2.11 per ADR, equivalent to a yield of about 2.6%.
TTE is changing hands around $76.92 with a 52-week increase of about 28.48% and a YTD gain of about 17.58%.
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Its profile is supported by a valuation metric of around 0.97x sales and 6.60x cash flow, both below the sector medians of 1.63x and 7.17x, which despite cash generation and more diversified earnings streams the shares still trade at a modest discount to peers.
TotalEnergies recently agreed to provide Google with 1 GW of solar capacity for its Texas data centers under a 15-year power purchase deal, sealing a long-term contracted cash flow in US renewables while strengthening ties with the blue-chip technology customer. That same strategic push is evident in Europe, where the company has partnered with Allianz Global Investors to develop a nearly 800 MW battery storage project in Germany, targeting one of the region’s most dynamic electricity markets.
Total fourth-quarter 2025 updates, released in early 2026, showed earnings per share of about $1.73 versus the consensus forecast of $1.80, a decline of about 3.89% that came with top-line acceleration. It reported revenue of approximately $50.62 billion in December, with YoY sales up 15.46%.
The same release details a net income of about $2.91 billion, a decrease of about 21.10% compared to the previous year. Their guidance section hinted at its next key milestone on April 29, with Street expecting Q1 2026 EPS of around $1.71 versus $1.83 a year ago, implying an estimated YoY decline of around 6.56% that still leaves meaningful earnings power.
TotalEnergies currently has a consensus “moderate buy” rating from 23 analysts, with an average target price of $75.38, implying a downside of roughly 2%.
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Taken together, Eni and TotalEnergies look like strong ways to get cash while the US-Iran conflict keeps a premium on energy prices. Both offer meaningful yields, discounted valuations, and real operating leverage to further supply shocks out of the Gulf. In a calm scenario, the returns are probably good towards these dividend checks and modest multiple expansions. However, in this tight conflict, the balance is tipping in favor of these stocks grinding higher as the cash flow surprise continues on the upside and the market continues to take refuge in major oil majors.
As of the date of publication, Ebob Jones had no positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com
