Oil prices surged on Friday after US president Joe Biden suggested that US officials are discussing whether to support Israeli strikes on Iranian oil facilities, a move that could lead to higher petrol prices in the UK and globally.

Oil is on track for its strongest week in more than a year as Brent crude futures (BZ=F) rose 1.7% to $78.93 a barrel, while US West Texas Intermediate (CL=F) crude climbed 1.6% to $74.98 per barrel at the time of writing.

Biden’s remarks came after he was asked on Thursday whether he would back Israeli strikes on Iran’s oil infrastructure, which accounts for the world's seventh-largest oil production.

“We’re discussing that,” Biden responded, intensifying market concerns about the potential impact on global oil supplies.

Analysts warn that a major strike could remove up to 1.5 million barrels of Iranian crude from daily global supply. Furthermore, any disruption in the strategically important Strait of Hormuz could push oil prices up by as much as $28 per barrel, according to market estimates.

UBS Global Wealth Management chief investment officer Mark Haefele noted that the ongoing Middle East conflict, while primarily a humanitarian crisis, has also "contributed to periods of market volatility" due to fears that a regional war could severely disrupt oil supplies. While UBS does not foresee an all-out war, Haefele highlighted that oil positions can act as a hedge against further escalation, with market fundamentals already supporting higher prices.

Oil stocks, represented by the European oil and gas index (SXEP.Z), climbed 0.7% on Friday, poised for their best weekly performance in nearly six months, with a 4.1% rise so far this week. Energy stocks have been the only sector to post gains in recent days, reflecting heightened investor demand.

Read more: Petrol prices may jump higher as oil spikes amid Middle East tensions

Amrita Sen, director of research at Energy Aspects, warned that oil prices could spiral even higher if Israel targets Iranian refineries and Tehran retaliates by attacking other oilfields and refineries in the region.

Energy stocks have been outperforming the broader market. Here are a few investors should keep under their radar amid rising oil prices

Exxon Mobil (XOM)

Shares in Exxon Mobil were higher in pre-market trading after closing Thursday's session at $122.

Exxon Mobil, which has gained nearly 20% year-to-date, remains highly sensitive to global oil price movements. As one of the world’s largest oil producers, with significant operations across the Americas and Africa, ExxonMobil could see a substantial boost in revenues from any disruptions in Middle Eastern supply.

Read more: Trending tickers: Palantir, Meta, Amazon, Wetherspoons and EVgo

According to Zacks Investment Research, higher crude prices are expected to enhance profitability for ExxonMobil’s upstream business, a major revenue driver for the company. The company’s global diversification also offers some protection against regional supply risks.

Chevron (CVX)

Chevron shares were also higher in pre-market trading, trading above 152$.

The US oil major also stands to benefit from rising crude prices. The company has significant exposure to the Middle East, particularly in Iraq’s Kurdish region. While Chevron is not directly involved in Iranian oil, a supply shock in the broader region could tighten the market, lifting prices.

Chevron’s integrated operations across the energy sector, coupled with its consistent upstream performance, position it to benefit from higher prices.

Read more: How to protect your investments in unstable markets

Zacks analysts said the company’s "robust" cash flow generation would further support its shareholder return program through dividends and share buybacks. With a 4.5% dividend yield and strong performance, Chevron could be considerate an attractive choice for conservative investors, earning an average "buy" rating and a price target of $177.08, implying 23% upside.

Occidental Petroleum (OXY)

Shares in Occidental Petroleum were also higher in pre-market trading amid rising oil prices but at $50 it might provide an easier entry point for investors.

The company might not be a household name on this side of the pond but it has gained attention following Warren Buffett’s significant investment.

Berkshire Hathaway (BRK-B) now owns 29% of Occidental, making it the company’s largest shareholder. With over 82% of its production sourced domestically, Occidental is well-positioned to benefit from rising oil prices.

"We particularly like its vast oil and gas holdings in the United States, as well as its leadership in carbon-capture initiatives," Buffet said,

Download the Yahoo Finance app, available for Apple and Android.