US Energy Stocks Soar on Rising Oil Prices, Iran Agreement Fading

US energy stocks have surged to record highs due to rising oil prices and fading hopes for a near-term US-Iran agreement. The S&P 500 Energy Sector Index rose by as much as 1.8% during trading, putting it on course for its first record close since March 27.

The index has rebounded about 20% since hitting a recent low on July 1. Energy shares had fallen 16% from their March peak amid expectations of reduced hostilities and negotiations between Washington and Tehran that could ease disruptions around the Strait of Hormuz.

US President Donald Trump's statement that he is not interested in extending an interim agreement with Iran has strengthened concerns about persistent restrictions on energy flows through the strategic waterway.