Oil tanker giant Frontline (FRO.US), which is becoming more cautious, saw its stock price rise in the Middle East conflict.

One of the world's largest oil tanker operator, Frontline (FRO.US), stated that the company is now "more cautious" in providing ships to transport goods from the Persian Gulf after Israel's nighttime airstrikes on Iran. At the same time, the escalating situation disrupting Iran's oil flow is expected to benefit companies like Frontline, causing its stock to soar in multiple markets. Frontline's CEO, Lars Barstad, said in a phone call, "We are more hesitant in our quoting." While there have been no major changes in the operating methods of ship owners, the company remains highly vigilant of oil tankers in the region. Israel's nighttime airstrikes on Iran's nuclear facilities have prompted Iran to vow retaliation. Prior to the attack, Western naval forces had warned that commercial shipping in the region faced higher risks, including around the global oil transport Hub Group, Inc. Class A near the Strait of Hormuz. Barstad noted that any escalation in the disruption of Iran's oil flow would benefit companies like Frontline, as Iran's oil is typically transported by sanctioned ships. He stated that if alternative oil sources come from non-sanctioned countries, it would boost demand for "compliant ships" like Frontline. On Friday, Frontline's stock price surged in the Oslo market, with an intraday increase of up to 7.9%. Frontline also saw continuous growth in the U.S. stock market, with the stock rising by 4.14% in pre-market trading at the time of writing. Barstad mentioned that shipowners will assess trade risks based on evaluations from insurance companies. He added that it is still too early to calculate the risks as the attack occurred recently.