Key Highlights

● International Seaways agreed to acquire Bruton for about $370 million.

● The transaction covers four VLCCs, the biggest class of oil tankers in common use.

● Brent settled at $109.86 after Iran escalated attacks on tankers in the Strait of Hormuz.

● Investors will look for closing timeline, financing and fleet deployment details.

The deal

International Seaways (NYSE:INSW) agreed to acquire Bruton for about $370 million, according to market reports. The transaction covers four VLCCs, or very large crude carriers, the biggest class of oil tankers in common use.

No figure for International Seaways' share move on Friday was reported. The S&P SmallCap 600 member owns and operates a fleet of crude oil tankers and product carriers that move crude and refined fuels for oil companies, traders and refiners around the world. Adding VLCCs expands its presence in the long-haul crude trade.

Tankers in the headlines

The deal came as the tanker market sat at the center of geopolitical news. Iran escalated attacks on tankers in the Strait of Hormuz, according to market reports, and threats to Russian refining added to concerns over energy supply. President Donald Trump said in reported comments: "Now, we're looking at Pickaxe Mountain. We may have to go there."

In Washington, Rep. Gregory Meeks introduced a bipartisan bill to revoke Russian energy transaction licenses. The International Energy Agency pledged to release the remaining 100 million barrels under its March agreement, a Saxo Bank analyst noted.

Oil and energy stocks rallied

Crude prices climbed. Brent rose $3.94 to settle at $109.86, its highest since May 19, after touching $110 intraday. West Texas Intermediate traded above $101 intraday; the December contract settled at $99.02. ING strategists said oil is "pricing in a significant risk premium."

Energy was the best-performing sector in the S&P 500. Equinor (NYSE:EQNR) rose, Diamondback Energy (NASDAQ:FANG) and Kinder Morgan (NYSE:KMI) jumped, and Matador Resources (NYSE:MTDR) surged to $57.48.

Another deal in the energy space drew interest: Crescent Energy (NYSE:CRGY) surged to $13.77, and one report tied part of the gain to its $4.2 billion acquisition of Devon (NYSE:DVN)'s Eagle Ford assets, though other sources cited only the energy rally.

Broader market

Outside energy, stocks fell. The S&P 500 lost 84.62 points to 7,659.44, the Nasdaq Composite dropped 572.99 points to 26,140.03 and the Dow Jones Industrial Average slipped 175.28 points to 52,002.41. The Russell 2000 fell 45.90 points to about 2,721. No closing level for the S&P SmallCap 600 was available. Chip and software stocks led the declines amid concerns about how artificial intelligence spending will be financed.

Merger activity extended beyond shipping. Proofpoint agreed to buy Varonis Systems (NASDAQ:VRNS) for about $6.3 billion, and SoftBank was reported to be in early talks to buy Allied Universal.

International Seaways Closing and Fleet Plans

Energy-related earnings next week include Halliburton (NYSE:HAL) on Tuesday, Oct 20, Kinder Morgan on Wednesday, Oct 21, Valero (NYSE:VLO) on Thursday, Oct 22, and SLB (NYSE:SLB) on Friday, Oct 23. The Federal Reserve announces its next decision on Oct 28.

For International Seaways, investors will look for details on the closing timeline, financing and how the four VLCCs fit into its fleet deployment. Tanker traffic through the Strait of Hormuz, and any further escalation involving Iran, remain the main geopolitical variables for the shipping and energy sectors.