Oil and gas stocks had a day to remember on Tuesday, and it's all thanks to a familiar source of market drama: geopolitics. The U.S. military announced it had begun striking Islamic Revolutionary Guard Corps targets in Iran, and the energy complex responded with a rally that sent crude prices to their highest level in months.
The strikes came after a tense night in the Strait of Hormuz, where two oil tankers—one Saudi, one South Korean—were hit by unknown projectiles, according to UK Maritime Trade Operations. No casualties or environmental damage were reported, but the message was clear: the world's most critical oil chokepoint is now a flashpoint.
West Texas Intermediate crude, as tracked by the United States Oil Fund (USO), jumped 4.7% to $90.46 a barrel, while Brent crude rose 4.6% to $95.05. That's a big move, and it rippled through the entire energy sector.
The Energy Select Sector SPDR Fund (XLE) was among the strongest sector ETFs on Tuesday, up 1.1%. The rest of the market? Not so much. The S&P 500 fell 0.7%, a reminder that what's good for oil isn't always good for the broader economy.
U.S. Central Command confirmed the strikes in a statement, saying they were in response to "recent attempted attacks by the IRGC against commercial shipping in the Strait of Hormuz and against American service members deployed to the region."
According to market data, these were the best-performing energy stocks with market capitalizations above $10 billion during Tuesday's session:
| Company | Price | % Change |
|---|---|---|
| Petróleo Brasileiro S.A. — Petrobras (PBR) | $20.31 | +4.96% |
| Ecopetrol S.A. (EC) | $17.48 | +4.83% |
| Canadian Natural Resources Ltd. (CNQ) | $51.93 | +3.71% |
| BP PLC (BP) | $44.36 | +3.46% |
| Antero Resources Corp. (AR) | $39.75 | +3.30% |
| Venture Global Inc. (VG) | $15.11 | +3.18% |
| Equinor ASA (EQNR) | $44.16 | +3.18% |
Prices at approximately 3:10 p.m. ET Tuesday.
Stocks tied to production and exploration, as tracked by the SPDR S&P Oil & Gas Exploration & Production ETF (XOP), rose 1.8% to $192.39, a 52-week high. That's a clear sign that investors are betting on higher oil prices sticking around.
But not every corner of the energy world got a boost. The VanEck Oil Services ETF (OIH) was flat, weighed down by a 3.7% drop in SLB (SLB), the largest oilfield services company in the world and the one with the deepest presence in the Gulf. Sometimes, geopolitical risk cuts both ways.
Oil majors Exxon Mobil Corp. (XOM) and Chevron Corp. (CVX) gained 2.3% and 2.1%, respectively, as investors flocked to the safety of integrated giants.
