US Energy Stocks Soar as Trump's Hardline Stance Boosts Oil Prices

US energy stocks have surged to record highs as oil prices reach nearly three-week highs following US President Donald Trump's hardline stance against Iran.

The S&P 500 Energy Sector Index rose by up to 1.8% during trading, putting it on track for its first record close since March 27. This comes after the index rebounded around 20% from a recent low on July 1.

Energy shares had previously fallen by 16% from their March peak due to temporary easing of hostilities and expectations that negotiations between Washington and Tehran could reduce disruptions around the Strait of Hormuz.

However, with Trump indicating he is not interested in extending an interim agreement with Iran, concerns have grown that restrictions on energy flows through the strategic waterway may persist. This has led to Brent crude climbing to around $91 a barrel, its highest level in nearly three weeks, while US benchmark West Texas Intermediate traded at around $85.

Oil prices have risen for three consecutive sessions, with Brent gaining roughly 50% since the beginning of the year due to Middle East conflict and supply constraints tightening global energy markets.