Key insights
- US energy stocks rose due to climbing oil prices driven by geopolitical tensions around the Strait of Hormuz. Exxon Mobil and Chevron saw gains, along with oil producers, service companies, and refiners. Higher energy prices could contribute to inflationary pressures, potentially influencing Fed policy and overall market sentiment, but the direct impact on broader US equities is moderate.
Investing.com -- Shares of U.S. energy companies gained on Tuesday, following a rise in oil prices.
Brent crude futures rose 2.6% to $111.05 per barrel, while U.S. West Texas Intermediate increased 3% to $99.28 per barrel.
Crude prices advanced as efforts to resolve the Iran war appeared to have stalled, with the Strait of Hormuz waterway remaining largely closed. The closure has deprived markets of energy supplies from the Middle East.
Energy majors Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX) rose 1.5% and 1.2%, respectively.
Oil and gas producers also moved higher, with Occidental Petroleum (NYSE: OXY) up 1.6%, ConocoPhillips gaining 1%, and APA Corp (NASDAQ: APA) rising 2.2%.
Oilfield services companies Baker Hughes (NASDAQ: BKR) climbed 2%, while Halliburton (NYSE: HAL) gained 1.1%.
Refiners Marathon Petroleum (NYSE: MPC) advanced 1.5% and Phillips 66 (NYSE: PSX) rose 1.7%.