Well, it seems we are back to square one in the Strait of Hormuz. The fragile ceasefire between the United States and Iran apparently collapsed over the weekend. The United States has resumed strikes on Iran, while Iran has announced that, once again, ships are not permitted to transit the Strait of Hormuz. Does this mean investors should look to ASX energy shares like Woodside Energy Group Ltd (ASX: WDS)?

Yes, we seem to be in a new phase of crisis when it comes to this all-important, and now universally recognised global chokepoint. With ships unable to transit the Strait, markets have turned bearish. The S&P/ASX 200 Index (ASX: XJO) is lower today, currently down by about 0.4%. But naturally, ASX energy shares like Woodside are going the other way. Woodside itself is currently up 0.3% in today’s session to $29.14 a share. Since last Tuesday, this stock, the largest oil and gas producer on the ASX, has lifted by a confident 4.15%.

Although not quite as high as the near-$36 levels we were seeing back in April, Woodside is still up by more than 23% in 2026 to date. Over the past 12 months, investors have enjoyed a 21% return.

Despite these impressive gains, Wodoside shares are still trading on an eye-catching dividend yield of 5.67% at present.

So, with global oil prices spiking once again, and a yield of that size on the table, are Woodside shares currently in the buy zone?

Woodside shares: Time to buy?

I think anyone debating this question is missing the forest for the trees. In Warren Buffett’s view of investing, which I share, good investing practice involves buying high-quality companies that have the ability to compound their earnings over many years at cheap prices.

I think Woodside falls short on a few of those criteria. Firstly, Woodside shares are becoming more expensive, not cheaper, as a result of recent events. That’s not a buy signal in my book.

Secondly, the latest developments in the Middle East are small chapters in what is becoming a very long book indeed. Yes, the Strait is back to being closed. But no one knows if it will reopen tomorrow, next week, or next year. Buying an energy stock based on a view of when a future event may occur is getting dangerously close to flipping a coin. A gamble is, or at least should be, a very different proposition from an investment decision.

Thirdly, it’s my view that most energy shares are not high-quality compounders. Their profits are largely out of their control, riding or dying on the back of fickle global energy prices. This can be great when prices are high. But it can also lead to a prolonged drought if energy prices remain subdued.

So no, I don’t think Woodside shares are attractive following the events of the weekend. In my view, there are simply too many unknowns to make an informed investment decision given the current circumstances.

The post With Hormuz closed, is there an opening to buy Woodside shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Wesfarmers Ltd (ASX: WES) shares are pushing higher again on Monday.

At the time of writing, the Wesfarmers share price is up 1.41% to $90.96. Today’s gain takes its rise in 2026 to around 12%.

The stock is also trading only about 4% below its 52-week high of $95.18.

There haven’t been any new company announcements today. However, Macquarie has lifted its price target by 1.2% to $86.

While the increase is positive, the new target still sits below the current share price.

So, has the market pushed Wesfarmers shares too far?

Why have Wesfarmers shares climbed?

The recent results help explain why the share price has kept climbing.

Wesfarmers reported a 3.1% increase in first-half revenue to $24.21 billion, while net profit rose 9.3% to $1.60 billion. The fully-franked interim dividend also increased 7.4% to $1.02 per share.

Bunnings remained the largest contributor, with earnings rising 5% to $1.39 billion. Kmart Group earnings increased 6.1% to $683 million.

Returns on capital (ROC) were around 70% at both businesses, which remains one of Wesfarmers’ biggest strengths.

Nonetheless, Wesfarmers is still looking for more growth. Bunnings has expanded into categories including tools, workwear, rural products, and automotive accessories. Kmart has kept expanding its Anko range and opened more joint venture stores in the Philippines.

Management said in February that its retail businesses had continued trading well through the first 6 weeks of the second half.

Brokers remain cautious

The share price now sits well above most broker forecasts.

Macquarie’s new $86 target is one of the higher recent estimates, but it still sits around 5.5% below the current share price.

Goldman Sachs and CLSA both have $78 targets, while Citi is more bearish with a $69 target.

Most analysts remain cautious. Investing.com currently shows an average 12-month price target of $76.36, around 16% below today’s price, along with an overall sell consensus.

The valuation is another reason for the caution. Wesfarmers trades on a trailing price-to-earnings (P/E) ratio of 33.7 times and offers a dividend yield of about 2.8%.

What does the chart show?

Momentum remains strong, although the stock is nearing overbought territory.

Wesfarmers has a relative strength index (RSI) reading of 68, just below the level of 70 generally viewed as overbought.

The share price is also above the middle Bollinger Band at around $88.48. The 52-week high near $95.18 is the next resistance level, while the $88 to $90 area is the nearest support zone.

Wesfarmers is still producing solid earnings, but the share price now leaves less room for a weak result.

The full-year result on 27 August will show whether earnings are keeping pace with the share price.

The post Up 12% in 2026! Are Wesfarmers shares now too expensive? appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Macquarie Group, and Wesfarmers. The Motley Fool Australia has recommended Macquarie Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is trading lower on Monday as another jump in oil prices weighs on global markets.

At the time of writing, the benchmark index is down 0.38% to 8,772 points after briefly moving above 8,820 earlier in the session.

The selling is spread across much of the market, with 118 ASX 200 shares trading lower, compared with 75 in positive territory and 7 stocks unchanged.

However, gains from the major banks and several energy shares are helping keep the decline from becoming much larger.

Here’s what is behind today’s fall.

Oil jump rattles global markets

The latest weakness follows another escalation in the conflict between the United States and Iran over the weekend.

Brent crude oil futures have climbed around 4% to more than US$79 a barrel, while West Texas Intermediate (WTI) crude is trading above US$74.

Concerns remain centred on the Strait of Hormuz and the potential disruption to energy shipments through the key waterway.

The oil rise is also adding to inflation concerns and has pushed US futures lower ahead of Monday night’s session.

S&P 500 Index (SP: .INX) futures are down 0.48%, while Nasdaq Composite Index (NASDAQ: .IXIC) futures are falling 1.12%.

Asian markets are also mostly lower. South Korea’s Kospi has dropped around 5%, while Japan’s Nikkei is down more than 1%.

Tech, healthcare and miners in the red

The weaker global lead is hitting several of the ASX 200’s larger growth and resources stocks.

Xero Ltd (ASX: XRO) shares are down 3.57% to $70.78, while WiseTech Global Ltd (ASX: WTC) has tumbled 2.32% to $33.21.

ResMed Inc (ASX: RMD) shares have dropped 5.53% to $28.37, and CSL Ltd (ASX: CSL) is 0.94% lower at $121.73.

The major miners are also weighing on the index. BHP Group Ltd (ASX: BHP) shares are down 0.70% to $57.87, while Rio Tinto Ltd (ASX: RIO) has slipped 0.58% to $163.53.

Mineral Resources Ltd (ASX: MIN) is among the heavier fallers, sinking 4.12% to $57.24.

Consumer staples are also lower. Woolworths Group Ltd (ASX: WOW) shares are down 1.07% to $39.73, while Coles Group Ltd (ASX: COL) has dipped 1.66% to $23.17.

Banks and energy shares provide support

The ASX 200 would be much lower without support from the major banks.

Commonwealth Bank of Australia (ASX: CBA) shares are up 0.26% to $169.30. Westpac Banking Corp (ASX: WBC) has added 0.30% to $36.65, National Australia Bank Ltd (ASX: NAB) is 0.43% higher at $39.78, and ANZ Group Holdings Ltd (ASX: ANZ) has gained 0.69% to $36.30.

Higher oil prices are also helping some energy stocks. Woodside Energy Group Ltd (ASX: WDS) shares are up 0.33% to $29.15.

The post ASX 200 drops as soaring oil prices rattle global markets appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, ResMed, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended ResMed, WiseTech Global, and Xero. The Motley Fool Australia has recommended BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.