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| Boilerpipe Text | Geopolitical tensions are rising, and with the Strait of Hormuz still closed to most ships, energy prices have remained elevated.
Oil
is now above $100 a barrel as of this writing and will likely go up even further if the strait is closed for longer.
If the prices of oil and natural gas remain elevated, it will likely induce inflation in markets such as the U.S. and increase the risk of a recession. And if you are worried about how these developments may affect your portfolio, here are two energy stocks you can load up on as a hedge against inflation.
Image source: Getty Images.
Occidental Petroleum's North American assets
Even though 15% of
Occidental Petroleum
's
(
OXY
0.86%
)
energy assets are in the Middle East, the oil and gas producer's stock has soared to start the year, trading up 44.5% year to date as of this writing on March 24.
Investors are betting that the region's conflict will lead to increased investment in North American oil and gas projects, to which Occidental has significant exposure. And if these remain among the world's most secure ways to source oil and natural gas, those commodities may command higher selling prices as places like Europe and Asia demand petroleum to sustain their economies.
OXY
Today's Change
(-0.86%) $-0.51
Current Price
$58.02
The last time that oil prices soared, Occidental Petroleum's
free cash flow
(FCF) soared to $12 billion. If prices stay above $100 a barrel throughout 2026, the company may generate even more in FCF despite the uncertainties around its Middle East assets.
After the stock's recent bump, the company now has a market cap of $61 billion, which would only be around five times this level of FCF, making Occidental Petroleum a nice inflation hedge if you are worried about oil prices staying high for the long haul.
Chevron's masterful pivot
A company that has skillfully transitioned from the Middle East to North and South America is
Chevron
(
CVX
0.96%
)
. It remains one of the largest oil and gas producers in the world and recently secured a strategic win by making large investments in Venezuela and Guyana, including the acquisition of Hess Energy. With the market potentially opening up in Venezuela, this could help the company at the perfect moment to increase production as oil and gas prices rise.
Chevron has only an estimated 5% of its FCF exposed to the Middle East, putting it in a much better position than the competition. Right now, the stock is up 33% in 2026, but it could still offer value to investors worried about oil prices staying higher for longer.
CVX
Today's Change
(-0.96%) $-1.83
Current Price
$188.53
Shares trade at a
dividend yield
of 3.44%. Last time oil prices soared, Chevron's FCF zoomed up to $36 billion, which is just over 10 times its current market capitalization. This is a lower multiple than Occidental Petroleum's peak FCF, but it has now significantly expanded its production capabilities from around 3 million barrels per day in 2022 to over 4 million barrels per day this year. That could help its FCF soar, making Chevron stock still a cheap inflation hedge for any portfolio right now. |
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# Protect Your Portfolio From Inflation: Buy These 2 Energy Stocks
These two stocks will do well if oil prices remain elevated.
By [Brett Schafer](https://www.fool.com/author/20330/) – Mar 26, 2026 at 3:29PM EST
[Follow us](https://profile.google.com/cp/CgkvbS8wNTc4bWs)
Share
Summarize with AI
## Key Points
- Rising oil prices will help Occidental Petroleum and Chevron.
- Both companies have only a small exposure to the Middle East.
- The stocks look cheap if you believe oil will stay above \$100 a barrel for 2026.
Geopolitical tensions are rising, and with the Strait of Hormuz still closed to most ships, energy prices have remained elevated. [Oil](https://www.fool.com/investing/stock-market/market-sectors/energy/oil-stocks/) is now above \$100 a barrel as of this writing and will likely go up even further if the strait is closed for longer.
If the prices of oil and natural gas remain elevated, it will likely induce inflation in markets such as the U.S. and increase the risk of a recession. And if you are worried about how these developments may affect your portfolio, here are two energy stocks you can load up on as a hedge against inflation.

Image source: Getty Images.
## Occidental Petroleum's North American assets
Even though 15% of **Occidental Petroleum**'s ([OXY](https://www.fool.com/quote/nyse/oxy/) 0\.86%) energy assets are in the Middle East, the oil and gas producer's stock has soared to start the year, trading up 44.5% year to date as of this writing on March 24.
Investors are betting that the region's conflict will lead to increased investment in North American oil and gas projects, to which Occidental has significant exposure. And if these remain among the world's most secure ways to source oil and natural gas, those commodities may command higher selling prices as places like Europe and Asia demand petroleum to sustain their economies.
Collapse
OXY
## [NYSE: OXY](https://www.fool.com/quote/nyse/oxy/)
Occidental Petroleum
Today's Change
(-0.86%) \$-0.51
Current Price
\$58.02
Unable to reach the data service. Please check your connection.
YTD
1w
1m
3m
6m
1y
5y
Price
VS S\&P
### Key Data Points
Market Cap
\$57B
Day's Range
\$57.63 - \$58.83
52wk Range
\$37.41 - \$67.45
Volume
464K
Avg Vol
17M
Gross Margin
31\.94%
Dividend Yield
1\.69%
The last time that oil prices soared, Occidental Petroleum's [free cash flow](https://www.fool.com/terms/f/free-cash-flow/) (FCF) soared to \$12 billion. If prices stay above \$100 a barrel throughout 2026, the company may generate even more in FCF despite the uncertainties around its Middle East assets.
After the stock's recent bump, the company now has a market cap of \$61 billion, which would only be around five times this level of FCF, making Occidental Petroleum a nice inflation hedge if you are worried about oil prices staying high for the long haul.
## Chevron's masterful pivot
A company that has skillfully transitioned from the Middle East to North and South America is **Chevron** ([CVX](https://www.fool.com/quote/nyse/cvx/) 0\.96%). It remains one of the largest oil and gas producers in the world and recently secured a strategic win by making large investments in Venezuela and Guyana, including the acquisition of Hess Energy. With the market potentially opening up in Venezuela, this could help the company at the perfect moment to increase production as oil and gas prices rise.
Chevron has only an estimated 5% of its FCF exposed to the Middle East, putting it in a much better position than the competition. Right now, the stock is up 33% in 2026, but it could still offer value to investors worried about oil prices staying higher for longer.
Collapse
CVX
## [NYSE: CVX](https://www.fool.com/quote/nyse/cvx/)
Chevron
Today's Change
(-0.96%) \$-1.83
Current Price
\$188.53
Unable to reach the data service. Please check your connection.
YTD
1w
1m
3m
6m
1y
5y
Price
VS S\&P
### Key Data Points
Market Cap
\$376B
Day's Range
\$186.50 - \$190.88
52wk Range
\$132.33 - \$214.71
Volume
363K
Avg Vol
13M
Gross Margin
14\.66%
Dividend Yield
3\.66%
Shares trade at a [dividend yield](https://www.fool.com/terms/d/dividend-yield/) of 3.44%. Last time oil prices soared, Chevron's FCF zoomed up to \$36 billion, which is just over 10 times its current market capitalization. This is a lower multiple than Occidental Petroleum's peak FCF, but it has now significantly expanded its production capabilities from around 3 million barrels per day in 2022 to over 4 million barrels per day this year. That could help its FCF soar, making Chevron stock still a cheap inflation hedge for any portfolio right now.
## Read Next
Apr 10, 2026
•By [Leo Sun](https://www.fool.com/author/2154/)
[The Energy Rally Has Cooled for Occidental Petroleum. Here's Whether to Buy the Dip.](https://www.fool.com/investing/2026/04/10/the-energy-rally-has-cooled-for-hot-ticker-heres-w/)
Apr 9, 2026
•By [Bram Berkowitz](https://www.fool.com/author/20255/)
[Occidental Petroleum Just Discovered Oil in an Exploratory Well Off the Gulf of America. Here Are 2 More Stocks That Could Soar as a Result.](https://www.fool.com/investing/2026/04/09/occidental-petroleum-just-discovered-oil-in-an-exp/)
Apr 8, 2026
•By [Matt DiLallo](https://www.fool.com/author/2093/)
[Here's What Could Happen to These 2 Oil Stocks if the Iran War Ceasefire Holds](https://www.fool.com/investing/2026/04/08/heres-what-could-happen-to-these-2-oil-stocks-if-t/)
Apr 7, 2026
•By [Billy Duberstein](https://www.fool.com/author/16731/)
[Why Occidental Petroleum Rallied in March](https://www.fool.com/investing/2026/04/07/why-occidental-petroleum-rallied-in-march/)
Apr 2, 2026
•By [Matt DiLallo](https://www.fool.com/author/2093/)
[Best Oil ETFs for 2026 and How to Invest](https://www.fool.com/investing/stock-market/market-sectors/energy/oil-stocks/oil-etf-stocks/)
Apr 1, 2026
•By [Matthew Benjamin](https://www.fool.com/author/20665/)
[Only 1 Sector Is Up Over the Past Month](https://www.fool.com/investing/2026/04/01/only-1-sector-is-up-over-the-past-month/)
### About the Author

Brett Schafer is a contributing Motley Fool stock market analyst covering consumer goods, financials, technology, and industrials. Brett is a self-taught investor and has hosted the Chit Chat Stocks podcast since 2018. He previously worked as a lab engineer for science laboratories. He holds a bachelor’s degree in mechanical engineering with minors in finance and mathematics from Washington State University. His lab work on Major League Baseball’s juiced ball problem was featured in The Wall Street Journal and other national outlets.
[TMFBrettSchafer](https://www.fool.com/author/20330/)
[@CCM\_Brett](https://x.com/CCM_Brett)
*[Brett Schafer](https://www.fool.com/author/20330/) has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a [disclosure policy](https://www.fool.com/legal/fool-disclosure-policy/).*
### Stocks Mentioned
[OX Occidental Petroleum NYSE: OXY\$58.03 (-0.86%)-\$0.51](https://www.fool.com/quote/nyse/oxy/)
[CV Chevron NYSE: CVX\$188.53 (-0.96%)-\$1.83](https://www.fool.com/quote/nyse/cvx/)
\*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
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| Readable Markdown | Geopolitical tensions are rising, and with the Strait of Hormuz still closed to most ships, energy prices have remained elevated. [Oil](https://www.fool.com/investing/stock-market/market-sectors/energy/oil-stocks/) is now above \$100 a barrel as of this writing and will likely go up even further if the strait is closed for longer.
If the prices of oil and natural gas remain elevated, it will likely induce inflation in markets such as the U.S. and increase the risk of a recession. And if you are worried about how these developments may affect your portfolio, here are two energy stocks you can load up on as a hedge against inflation.

Image source: Getty Images.
## Occidental Petroleum's North American assets
Even though 15% of **Occidental Petroleum**'s ([OXY](https://www.fool.com/quote/nyse/oxy/) 0\.86%) energy assets are in the Middle East, the oil and gas producer's stock has soared to start the year, trading up 44.5% year to date as of this writing on March 24.
Investors are betting that the region's conflict will lead to increased investment in North American oil and gas projects, to which Occidental has significant exposure. And if these remain among the world's most secure ways to source oil and natural gas, those commodities may command higher selling prices as places like Europe and Asia demand petroleum to sustain their economies.
OXY
Today's Change
(-0.86%) \$-0.51
Current Price
\$58.02
The last time that oil prices soared, Occidental Petroleum's [free cash flow](https://www.fool.com/terms/f/free-cash-flow/) (FCF) soared to \$12 billion. If prices stay above \$100 a barrel throughout 2026, the company may generate even more in FCF despite the uncertainties around its Middle East assets.
After the stock's recent bump, the company now has a market cap of \$61 billion, which would only be around five times this level of FCF, making Occidental Petroleum a nice inflation hedge if you are worried about oil prices staying high for the long haul.
## Chevron's masterful pivot
A company that has skillfully transitioned from the Middle East to North and South America is **Chevron** ([CVX](https://www.fool.com/quote/nyse/cvx/) 0\.96%). It remains one of the largest oil and gas producers in the world and recently secured a strategic win by making large investments in Venezuela and Guyana, including the acquisition of Hess Energy. With the market potentially opening up in Venezuela, this could help the company at the perfect moment to increase production as oil and gas prices rise.
Chevron has only an estimated 5% of its FCF exposed to the Middle East, putting it in a much better position than the competition. Right now, the stock is up 33% in 2026, but it could still offer value to investors worried about oil prices staying higher for longer.
CVX
Today's Change
(-0.96%) \$-1.83
Current Price
\$188.53
Shares trade at a [dividend yield](https://www.fool.com/terms/d/dividend-yield/) of 3.44%. Last time oil prices soared, Chevron's FCF zoomed up to \$36 billion, which is just over 10 times its current market capitalization. This is a lower multiple than Occidental Petroleum's peak FCF, but it has now significantly expanded its production capabilities from around 3 million barrels per day in 2022 to over 4 million barrels per day this year. That could help its FCF soar, making Chevron stock still a cheap inflation hedge for any portfolio right now. |
| Shard | 88 (laksa) |
| Root Hash | 16263700115757751488 |
| Unparsed URL | com,fool!www,/investing/2026/03/26/protect-portfolio-inflation-buy-energy-stocks/ s443 |