The Iran War has driven oil prices to some of their biggest gains in futures history, with Brent crude surpassing $100 per barrel on Thursday, March 12, 2026.
The reason behind soaring oil prices is the closure of the Strait of Hormuz, a narrow shipping lane between Iran and Oman. Every day, as much as 30% of the world’s supplies of oil and liquefied natural gas (LNG) are transported through the waterway, but Iran’s army has caused major supply disruptions by setting fire to oil tankers and killing seven people.
As oil and gas prices rise amid the conflict, some of the world’s biggest energy companies, like Chevron Corp. (CVX), stand to benefit.
But is CVX a good buy for the long term?
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Is Chevron a good buy now?
With a market capitalization of $395 billion as of March 2026 and annual revenue of around $189 billion, CVX remains a dominant force in the global energy sector.
In fact, its sheer scale and strong balance sheet are two reasons why it’s so attractive.
Related: How many employees does Chevron have? A look inside its global workforce
In 2025, Chevron reported $12.3 billion in net income while at the same time growing its free cash flow to an adjusted $20.2 billion, which signifies stability as well as a potential for even more future growth.
In addition, according to Yahoo! Finance, CVX has a relatively low debt-to-equity ratio when compared to peers like ConocoPhillips (0.20 vs 0.36).
CVX has a long and resilient history, with roots tracing back centuries, to 1879, when it was founded as Pacific Coast Oil Company. John D. Rockefeller himself acquired the company in 1900; he merged it with Standard Oil Company and, in the process, created an oil giant.
While Chevron’s acquisition of Hess Corp. was held up in courts for over a year due to arbitration with ExxonMobil over some of its oil assets, the deal finally went through in July 2025 for $55 billion. In the process, CVX expanded its output to a record 4.1 million barrels of oil equivalent per day, as reported on its Q4 earnings call.
But buying Hess was just one part of Chevron’s long-term business strategy, one that included a broader restructuring effort launched by CEO Mike Wirth in 2024 to streamline operations and enhance profitability.
And while the company plans to shed 15–20% of its global workforce by the end of 2026, on the earnings call, Wirth stated that CVX is now “bigger, stronger, and more resilient than ever,” due to its increased production and consistent dividends.
Speaking of dividends, Chevron has raised its dividend each year for 39 years straight, which isn’t something a lot of companies can say. This lands it among the ranks of the so-called “dogs of the Dow,” a category that includes the 10 highest dividend-yielding stocks in the Dow Jones Industrial Average, America’s oldest (and arguably most prestigious) stock market index.
Currently 3.76%, CVX’s dividend yield alone makes it a juicy prospect for long-term investors.
Related: The Dow’s best dividend stocks: A shortlist for income investors
Why investors should be cautious
Chevron’s dividend is considered exceptional, especially compared to other S&P 500 companies: Its average yield is between 1% and 2%. The fact that CVX has raised its dividend for nearly four decades places it among a select group of stocks known as the dividend aristocrats.
There are currently only 69 stocks that make up this elite category: They are viewed as stable and reliable blue chips and are favored by retirees and income investors because they offer sustainable income — even when the markets turn.
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However, investing in the energy sector always comes with risks, as commodity prices often fluctuate. These prices swing based on global supply and demand, as well as geopolitical tensions — which we’ve seen in spades in 2026.
Investors must remember that energy price spikes frequently lead to increased production and oversupply (energy companies, after all, are profit-seeking entities), which causes a glut and, consequently, results in price crashes. What goes up can very quickly come back down, so they say, and so short-term investors must be prepared to handle these price swings.
Then again, famed investor Warren Buffett may have put it best when he said: “Be fearful when others are greedy and be greedy only when others are fearful.”
Related: What does Chevron mean? A look inside its corporate logo
