Woodside Energy Group Ltd (ASX: WDS) shares have jumped higher again on Tuesday. At the time of writing, the shares are up another 1.4% to $35.42.
Today's increase follows a steep share price rally during the first three months of 2026, which accelerated significantly since conflict between the US and Iran ramped up in late February.
Rising oil prices have acted as a strong tailwind for Woodside shares over the past month. Conflict in the Middle East has threatened the movement of oil in the region while shipping disruptions and production cuts caused prices to skyrocket to a multi-year high.
Trading Economics data shows that the price of WTI crude oil has nearly doubled since late February. At the time of writing, the price of oil has surged to US$115 per barrel, which is the highest price since June 2022.
Woodside shares are now up 49.6% for the year to date and 84% higher than just 12 months ago.
Here are four reasons why I think the ASX energy shares are still a screaming buy.
Image source: Getty Images
1. Surging oil prices show no sign of slowing down
As Australia's largest oil operator and producer, global oil supply concerns arising from the ongoing conflict in the Middle East are acting as a significant tailwind for Woodside shares.
US President Donald Trump has warned that he will target Iranian power plants and bridges if his deal conditions are not met by Tuesday 8pm Eastern Time. Tehran has warned it will retaliate. The latest update has overshadowed any signs that the two nations may be moving toward a ceasefire agreement.
2. Woodside has strong financials
The oil and gas giant reported a strong 2025 result in late February, which confirmed an all-time high full-year production of 198.8 million barrels of oil equivalent (MMboe), topping guidance. Its costs fell 4% for the calendar year, and while revenue dropped 1%, its EBITDA was in line with 2024.
3. It pays good dividends to shareholders
Its strong financial position means it has been able to pay a consistent dividend payment to its shareholders, and at a good yield. Woodside traditionally makes two fully-franked dividend payments to shareholders every year, payable in March/April and September/October.
It most recently paid a final dividend of 59 cents per share late last month, fully franked. That brings the total annual dividend to $1.12 per share, which implies a yield of 3.156% at the time of writing.
4. Upside potential ahead
Even after the latest share price rally, some analysts think there is potential for more upside ahead over the next 12 months.
TradingView data shows that, of 15 analysts, eight have a hold rating and another five have a buy or strong buy rating on Woodside shares.
The maximum target price is $44.03, which implies a potential 24.3% upside over the next 12 months.
