Here's Why Shares in PBF Energy Popped Higher (And are a Great Way to Hedge Geopolitical Conflict)

PBF Energy (PBF) surged 10.5% this week, extending its 2026 gain to nearly 125%, as widening crack spreads drive refining margins sharply higher. The gap between refined product prices and crude oil costs has expanded following geopolitical disruptions in the Strait of Hormuz, where the collapse of a memorandum of understanding with Iran has restricted commercial traffic and tightened global refined product supply.

PBF benefits from a dual advantage: access to abundant domestic U.S. crude supply while selling refined products into a constrained global market. The Strait of Hormuz tensions have effectively reduced competition from international refiners, allowing U.S.-based operators to capture wider margins on gasoline, diesel, and other products.

The 125% year-to-date performance places PBF among the top gainers in the energy sector for 2026, with the company positioned as a direct beneficiary of ongoing Middle East supply disruptions. As long as the Strait remains partially restricted, refined product scarcity should support elevated crack spreads.