My 3 Highest Conviction Energy Stocks to Buy Amid All the Uncertainty Caused by the War With Iran

The war with Iran has upended the global energy markets. It has caused the biggest supply disruption in decades due to Iran's attacks on oil tankers exiting the Persian Gulf through the Strait of Hormuz, which handled 20% of global oil and liquified natural gas (LNG) volumes before the war. The longer the war rages, the bigger the global energy crisis could become.

On a more positive note, the U.S. is seeking to end the conflict. If that happens, energy prices could fall sharply.

This uncertainty is making it much harder to invest in energy stocks. Here are my three highest-conviction energy stocks to buy despite all the uncertainty surrounding the war.

Image source: Getty Images.

Brookfield Renewable

Brookfield Renewable (NYSE: BEPC)(NYSE: BEP) is a leading global renewable energy producer. It operates hydroelectric, wind, solar, and battery storage assets secured by long-term power purchase agreements (PPAs) with utilities and large corporations. Most of its PPAs tie rates to inflation. As a result, Brookfield generates stable, steadily rising cash flow across market environments.

Global renewable power demand is surging, driven by climate change concerns, energy security needs, and the rise of growth catalysts like AI data centers. Given the war's impact on global energy markets, it could drive increased investment in renewable energy in the future as countries seek greater energy security.

Brookfield Renewable already expects to grow briskly in the coming years, targeting funds from operations per share growth of more than 10% annually through 2031. That should support continued dividend growth of 5% to 9% per year. With a 4% yield and double-digit earnings growth ahead, Brookfield should generate high-powered total returns in the coming years.

Enbridge

Enbridge (NYSE: ENB) is one of North America's largest energy infrastructure companies. It transports 30% of the continent's crude oil, moves 20% of all gas consumed in the U.S., operates the largest gas utility franchise, and is a meaningful renewable power producer. These businesses generate extremely durable earnings (over 98% regulated or take-or-pay contracted).

Enbridge's earnings are so predictable that it has achieved its annual financial guidance for 20 years in a row. That includes several turbulent periods in the energy market. The company has also increased its dividend (which yields over 5%) for 31 consecutive years (in Canadian dollars).

Enbridge has a multi-billion-dollar backlog of commercially secured expansion projects that should come online through the early 2030s. The company expects its growth initiatives to fuel around 5% annual cash flow per share grow through the end of the decade. Add that to its high-yielding dividend, and Enbridge could deliver high-octane total returns in the coming years.

Chevron

Chevron (NYSE: CVX) has rebuilt its portfolio over the years to thrive at lower oil prices. It has sold off low-margin assets and invested heavily to acquire and develop low-cost, high-margin resources. As a result, Chevron has one of the lowest breakeven levels in the energy sector. It can fund its capital program and dividend at an average oil price below $50 a barrel through 2030.

This year was already going to be a major inflection point for Chevron. It completed several large growth capital projects in 2025 and closed its needle-moving acquisition of Hess. As a result, the company expected to produce an additional $12.5 billion in free cash flow this year at $70 oil (from a base of $20.1 billion in 2025). Chevron is now on track to produce an even bigger free cash flow gusher this year. That will enable the company to repurchase shares at the high-end of its $10 billion to $20 billion target range while further strengthening its already elite balance sheet to weather future oil price declines.

Chevron expects to grow its free cash flow at a more than 10% annual rate through 2030, assuming oil averages $70 a barrel. It could grow much faster if oil prices remain elevated. That should allow it to continue increasing its dividend, which it has done for 39 straight years.

Built to thrive despite the volatility

Brookfield Renewable, Enbridge, and Chevron can all thrive even if a Middle East peace deal pushes energy prices lower. That drives my high conviction in these energy stocks amid the current uncertainty. I expect them to create significant value for shareholders in the future, regardless of what happens in the energy market.

Matt DiLallo has positions in Brookfield Renewable, Brookfield Renewable Partners, Chevron, and Enbridge. The Motley Fool has positions in and recommends Chevron and Enbridge. The Motley Fool recommends Brookfield Renewable and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.