BATL, INDO Stocks Hit Over 3-Year Highs As Strait Of Hormuz Fears Lift Oil — Analyst Says Retail Gas Hikes Begin This Week

WTI hovered near $71 and Brent near $78 after threats to close the Strait of Hormuz.

• Trump vowed to do “whatever it takes,” while Secretary of State Marco Rubio said a cost-mitigation program would begin Tuesday.
• Analyst Patrick De Haan expects retail gasoline prices to increase by $0.10 to $0.30 per gallon over the coming week.
• Battalion boosted gas processing to over 30 million cubic feet per day in January, while Indonesia Energy advanced drilling plans at Kruh Block.

Shares of Battalion Oil Corp. (BATL) and Indonesia Energy Corp. (INDO) hit their highest levels since 2022 on Monday as crude held most of its gains driven by the U.S.-Iran conflict, with a fuel analyst saying the move is already filtering through to retail gasoline markets.

BATL stock surged 123% on Monday, hitting its highest level since November 2022, and added more than 35% in extended trading. Meanwhile, INDO shares rose 15% during the session to their highest level since October 2022 before slipping slightly in extended trade.

Oil Holds Gains As Strait Of Hormuz Threat Escalates

West Texas Intermediate traded near $71 a barrel after rallying more than 6% on Monday, while Brent crude ended near $78. Oil markets were jolted after the U.S. and Israel intensified military operations against Iran and Tehran threatened a full closure of the Strait of Hormuz, which handles roughly a fifth of global oil flows.

An adviser to Iran’s Islamic Revolutionary Guard Corps said forces would “set fire to any ship attempting to pass through” the strait. Tanker traffic has slowed sharply, and freight rates for Middle East crude routes surged to record levels. Energy infrastructure has also been targeted, including a halt to operations at Saudi Aramco’s Ras Tanura refinery and the shutdown of liquefied natural gas production at Qatar’s largest export facility.

U.S. President Donald Trump said the U.S. would do “whatever it takes” in the conflict, while Secretary of State Marco Rubio said the campaign would intensify and a program to mitigate energy costs would begin Tuesday. The administration has no immediate plans to release crude from the Strategic Petroleum Reserve, according to a Bloomberg report. 

Analyst Says Retail Gas Hikes Begin This Week

While energy stocks reacted immediately to the surge in crude prices, Patrick De Haan, an analyst at GasBuddy, said the more tangible impact on consumers is just beginning.

De Haan said wholesale markets have already adjusted to higher oil prices. “We now have real numbers to analyze — not just hypotheticals,” he said, noting that crude is up roughly $5 to $6 per barrel, wholesale gasoline has risen about $0.11 per gallon, and wholesale diesel has jumped $0.38 per gallon.

He said this is a “risk premium being layered onto an already tightening seasonal market,” rather than a confirmed supply shock.

“To be clear: I do expect prices to begin inching higher in most states today or tomorrow — and in some markets, that process is already underway,” De Haan said. “Oil moves first. Rack prices follow. Retail adjusts after that.”

He expects average gasoline prices to rise by $0.10 to $0.30 per gallon over the coming week, with price-cycling markets potentially seeing sharper resets of $0.30 to $0.85 per gallon. Diesel prices could climb $0.20 to $0.35 per gallon this week, reflecting tighter distillate fundamentals.

De Haan added that the geopolitical premium is landing on top of seasonal factors such as the shift to summer gasoline blends, refinery maintenance and rising demand. “Volatility? Yes. Explosive structural repricing? Not yet,” he said.

BATL, INDO Track Oil’s War-Driven Spike

In January, Battalion terminated its gas treating agreement with Wink Amine Treater after the prior facility ceased operations and entered into a new agreement with a large-cap midstream provider. Following a fourth-quarter expansion, the alternate facility processed more than 30 million cubic feet of gas per day in January, up from about 17.4 million cubic feet per day in December. Battalion said “additional flow assurance and operational reliability” contributed to a roughly 1,200 net barrels of oil per day increase month-to-date in January versus December levels.

On the other hand, Indonesia Energy reported pre-drilling progress on two wells at its Kruh Block and said it remained on track to begin drilling before the end of the first quarter of 2026, with wells expected to be drilled back-to-back. 

In October 2025, the company signed a memorandum of understanding to explore hybrid solar and natural gas energy projects in Brazil with a potential initial capacity of 10 megawatts and expansion up to 400 megawatts.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment for BATL and INDO was ‘extremely bullish’ amid ‘extremely high’ message volume.

One user said BATL will “be in the 25 to 35 range in the next week or two... The war has just started, and it's going to be four or five weeks and more, who knows with Trump at the helm... We could see $120 a barrel.”

Another user said his “realistic target” for INDO is $15, and added that it would “be nice to hit $21. Oil and energy is the play this year in my opinion.. AI will come back next year lol”

While BATL has skyrocketed by more than 900% so far this year, INDO has more than doubled over the same period.

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