Hormuz Ship Attacks Send Energy Stocks Soaring Amid Crude Price Surge

Energy stocks rose on Friday as oil prices increased following fresh ship attacks near the Strait of Hormuz, which slowed traffic through the key oil-shipping chokepoint.

According to Reuters, investors treated the incident as a classic 'supply-risk' shock, pushing crude prices up due to concerns over near-term shortages. West Texas Intermediate (WTI) gained 1.4% to $82.41 a barrel, while Brent rose 1.7% to $88.53.

US natural gas, however, went the other way, with Henry Hub futures down 0.3% to $2.72 per million British thermal units. Energy stocks broadly followed oil higher, but oilfield-services companies led the charge, with the NYSE Energy Sector Index rising 1.3% and the Energy Select Sector SPDR ETF adding 1.4%.

The Philadelphia Oil Service Sector Index jumped 2.6%, showing how quickly markets can respond to changes in crude prices. Stronger prices raise the cash producers expect to bring in near term, often loosening budgets for drilling, hydraulic fracturing (fracking), and maintenance work, which benefits oilfield-services firms.