Shares of oil and gas companies rise premarket as crude prices jumped more than 2% in the first session of the New Year.

Oil prices rose on Middle East supply disruptions chances after a naval clash in the Red Sea, as well as hopes of strong holiday demand and an economic stimulus in China, the top importer of crude.

U.S. helicopters repelled an attack on Sunday by Iran-backed Houthi militants on a Maersk container vessel in the Red Sea, sinking three Houthi ships and killing 10 militants, fuelling risks of the Israel-Gaza war becoming a wider regional conflict.

Brent crude LCOc1 up 2.3% at $78.81/bbl while U.S. West Texas Intermediate crude CLc1 climbs 2.2% to $73.27/bbl.

Oil majors Exxon Mobil XOM.N and Chevron CVX.N each gains 1%.

Oil and gas producers Marathon Oil MRO.N and Occidental Petroleum OXY.N rise 1% and 1.2%, respectively.

Oilfield services companies SLB SLB.N up 1.7% and Halliburton HAL.N up 1%.
Source: Reuters (Reporting by Arunima Kumar in Bengaluru)