Oil Price Surge Fuels Interest in Utility Funds Amid Geopolitical Tensions

Geopolitical tensions are rising, and oil prices have surged due to the renewed concerns over a potential oil price spike. The United States and Iran failed to make progress toward an immediate peace agreement, causing tension to increase.

The US West Texas Intermediate crude futures rose by 2.6% on Monday to settle at $84.50 per barrel, while international benchmark Brent crude advanced by 2.7%, ending at $90.87 a barrel.

Investors are advised to consider utility funds as a safe haven in this uncertainty. Fidelity Select Utilities FSUTX, Franklin Utilities Fund FKUTX, and American Century Utilities Inv BULIX are notable options that have demonstrated impressive annualized returns over 3-year and 5-year periods.