The already fraught geopolitical situation in the Middle East flared up over the weekend. With no resolution forthcoming in the Israel-Hamas war, tensions are now escalating between old foes Iran and Israel. Having long engaged in a proxy war, a suspected Israeli attack on the Iranian consulate in Syria prompted a retaliatory strike by Iran over the weekend, as Tehran launched over 300 drones, and missiles, marking the first-ever direct attack on Israeli territory from Iranian soil.

Oil prices have cooled this morning from Friday's highs, as early analysis suggests the attack by Iran seems engineered to make a point more than to escalate aggressions. Already, though, crude futures (CLK24) were climbing against a backdrop of rising demand on strong economic data and OPEC production cuts. With Middle East tensions now on a razor's edge, oil prices are still lingering near year-to-date highs.

Against this backdrop, here are five oil stocks that could be set to benefit.

1. Chevron

Founded in 1879 as the Standard Oil Company of California, Chevron (CVX) is one of the biggest energy companies in the world. It is integrated across the energy sector and is involved in the exploration and production of oil and natural gas, refining, transportation, and marketing of petroleum products, chemicals manufacturing and power generation. Its market cap currently stands at a mammoth $295.2 billion.

CVX stock is up 6.6% on a YTD basis and it offers a dividend yield of 3.88%.

Overall, analysts have a rating of “Strong Buy” for CVX stock with a mean target price of $180.67, which indicates an upside potential of about 13.7% from current levels. Out of 21 analysts covering the stock, 15 have a “Strong Buy” rating, 2 have a “Moderate Buy” rating, and 4 have a “Hold” rating.

2. Schlumberger NV

Schlumberger NV (SLB) was founded in 1927 by Conrad and Marcel Schlumberger, two French brothers who pioneered well-logging techniques. Currently headquartered in Houston, the company is a leading oilfield services company, providing a vast array of services across the oil and gas exploration and production lifecycle, including reservoir characterization and production optimization, among others. Its market cap is currently $74.2 billion.

Schlumberger stock is little changed on a YTD basis, though it offers a dividend yield of 1.44%.

Overall, analysts have deemed SLB stock a “Strong Buy,” with a mean target price of $68.55 - which denotes an upside potential of about 31.8% from current levels. Out of 20 analysts covering the stock, 17 have a “Strong Buy” rating and 3 have a “Moderate Buy” rating.

3. Kinder Morgan

Established in 1997, Kinder Morgan (KMI) is a midstream energy company, meaning they specialize in the transportation and storage of natural gas (NGK24), crude oil, and refined petroleum products. Its market cap currently stands at $40.2 billion.

KMI stock is up 2.7% on a YTD basis, and it offers a dividend yield of 6.23%.

Analysts are optimistic about KMI stock, with a consensus rating of “Moderate Buy” and a mean target price of $20.31. This denotes an upside potential of roughly 12% from current levels. Out of 19 analysts covering the stock, 5 have a “Strong Buy” rating, 1 has a “Moderate Buy” rating, 12 have a “Hold” rating, and 1 has a “Moderate Sell” rating.

4. Cenovus Energy

Founded in 2017 as a spin-off from Encana Corporation, Cenovus Energy (CVE) operates across the integrated oil and gas sector in North America, with a focus on downstream (owning and operating refineries, participating in product marketing and distribution) activities as well as integrated activities. It currently commands a market cap of $39.1 billion.

CVE stock has gained 25.8% on a YTD basis, and it offers a dividend yield of 1.97%.

Overall, analysts have deemed CVE stock a “Strong Buy,” with a mean target price of $23.50. This indicates an upside potential of about 12.2% from current levels. Out of 13 analysts covering the stock, 11 have a “Strong Buy” rating and 2 have a “Moderate Buy” rating.

5. Halliburton

We conclude our list with Halliburton (HAL). Halliburton was founded in 1919 by Erle P. Halliburton in Duncan, Oklahoma. Now based out of Houston, the company is a leading provider of products and services across the entire oil and gas exploration and production lifecycle - like drill hole wellbore completion, formation evaluation, and artificial lift and production optimization, among others. Its market cap currently stands at $35.2 billion.

Halliburton stock is up almost 10% on a YTD basis. The stock also offers a dividend yield of 1.64%.

Analysts have an average rating of “Strong Buy” for HAL stock, with a mean target price of $47.25, which indicates an upside potential of about 19.1% from current levels. Out of 19 analysts covering the stock, 16 have a “Strong Buy” rating, 2 have a “Moderate Buy” rating, and 1 has a “Hold” rating.