Oil and Fertilizer Prices May Soon Have Ripple Effects on These 3 Commodities Stocks

The ongoing Strait of Hormuz blockade has already translated into higher gas prices across the country, and those prices should continue to climb if a speedy resolution isn't achieved. Higher oil prices also increase the cost of other commodities, like fertilizer.

Fertilizer production requires a lot of natural gas, the price of which goes up in tandem with oil. The blockade had left more than 1 million tons of fertilizer stuck in the Gulf, according to a March 13 report, and farmers are already being hit by a shortage.

Here are three stocks to watch as the conflict in the Middle East continues.

Image source: Getty Images.

1. CF Industries

CF Industries (NYSE: CF) is a leading manufacturer of hydrogen and nitrogen products, two critical components that go into producing fertilizer. Its network is primarily located in North America, and the company notes that "our structural advantages are rooted in our North American operations. This gives direct access to low-cost natural gas and strategically positions our operation near end users."

The company was growing before the blockade, with $1.46 billion in net earnings last year compared to $1.22 billion in 2024. Net sales were up by 19.2% year over year for the entirety of 2025.

In 2025, the company noted that it was able to boost sales "due to strong global nitrogen demand and supply disruptions from geopolitical issues and natural gas availability." And that was before the current Iran war started.

CF Industries also bought back $1.34 billion worth of shares last year, reducing its outstanding share count by approximately 10% compared to its share count at the end of 2024. This gives each remaining share claim to a larger portion of the company.

While the current blockade is affecting fertilizer, it doesn't affect CF Industries as the company does not source inputs via the Strait of Hormuz. It enjoys pricing power without having to slow down production, and the company could also serve as a viable replacement for competitors that rely on the Strait of Hormuz for their logistics.

2. ExxonMobil

ExxonMobil (NYSE: XOM) is one of the most iconic oil stocks, and it stands to benefit from rising gas prices. It's the largest publicly traded U.S. oil and gas company by market cap, and it's only edged out by a few government- and state-owned entities like Saudi Aramco.

The oil company delivered exceptional returns when gas prices surged in 2022. The stock was up by more than 80% that year, and if the Strait of Hormuz remains closed, the same trend may repeat.

ExxonMobil was already going into 2026 with industry-leading earnings of $28.8 billion. While that's a slight drop from the previous year, the energy giant cited weaker crude prices as the main reason, but that hasn't been a problem so far this year. Oil futures have surged by roughly 60% year to date, and that includes a 30% rally since the end of February.

Investors also get a generous 2.5% dividend yield as they wait for ExxonMobil shares to appreciate.

3. Vaalco Energy

The Strait of Hormuz blockade doesn't change the fact that global economies need oil, which gives companies less reliant on that trading route a distinct advantage. Vaalco Energy (NYSE: EGY) operates in Gabon, Egypt, and Côte d'Ivoire. None of those locations is affected by the blockade in the Strait of Hormuz, which lets Vaalco Energy enjoy premium pricing without the logistics headaches.

It's also a small-cap stock -- with a market cap around $665 million -- which makes it more likely to experience sharp price swings. That's part of the reason Vaalco Energy has outperformed the other stocks on this list with almost 70% in year-to-date gains. It also has a dividend yield above 4%.

Vaalco Energy was already expanding its oil capacity before the blockade. It completed a multiyear drilling campaign in Egypt that resulted in four development wells, with the last one completed in January 2026. High revenue growth correlated with rising oil prices could help Vaalco Energy invest in more wells and shoot up in stock price.

Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.