ConocoPhillips (NYSE:COP) shares are trading higher by 2.19% to $113.84 Monday afternoon. Shares of several oil and gas companies are gaining as tensions rise in the Middle East after Israel and Hezbollah fired missiles across the Lebanon border. Additionally, recent reports suggested Libya shut down oil production.

West Texas Intermediate (WTI) light crude surged 3% to over $77 per barrel on Monday morning. The price spike follows a weekend of intense conflict in the Middle East, where Hezbollah launched a large-scale assault on Israel in retaliation for the killing of a senior commander.

The ongoing violence has stoked fears of a broader regional conflict, contributing to the rise in oil prices.

Libya Supply Concerns: In addition to Middle East tensions, Libya's political and security situation has further fueled concerns about global oil supply. The Waha Oil Company, a subsidiary of the National Oil Corp and operator of a joint venture with ConocoPhillips, announced plans to cut crude production amid growing protests and pressures.

The eastern government of Libya, a rival to the Tripoli-based administration, has halted oil production and exports, exacerbating the global supply worries.

Impact On ConocoPhillips: As one of the world's largest independent exploration and production companies, ConocoPhillips stands to benefit directly from the rise in crude oil prices. The company's profitability is closely tied to the price of oil, with higher prices translating to increased revenue from its global operations.

The supply disruptions in Libya, where ConocoPhillips has a stake through its joint venture, further amplify the potential for increased earnings as production elsewhere becomes more valuable.

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Is COP A Good Stock To Buy?

An investor or trader's decision to buy or sell a stock is unique to their time horizon and risk tolerance. Many typical investors evaluate earnings growth and valuation on a particular stock before making a decision.

For example, for ConocoPhillips, you'll notice that earnings in its last quarter grew 9.39% source. As an investor, you'll want to decide whether that's better or worse than what you'd like to see among stocks in your portfolio.

On the valuation side, ConocoPhillips's price to earnings ratio – a measure of how much an investor pays for the company's earnings – is grown 20.3% in the current quarter when compared with last year. That places it below similar businesses EOG Resources, Hess, Diamondback Energy in its sector. You'll need to decide whether that makes it more or less attractive based on how you think the company will perform over time.

There are many different valuation metrics that may help you make a decision. Find more on ConocoPhillips's quote page, or if you'd like a deeper dive in an advanced program, try Benzinga PRO for free.

COP has a 52-week high of $135.18 and a 52-week low of $102.27