US Energy Stocks Soar to Record Highs on Rising Oil Prices and Trump's Iran Stance
US energy stocks have reached record highs as oil prices surge to $91 per barrel on Tuesday, driven by US President Donald Trump's hard line against Iran. The S&P 500 Energy Sector Index rose as much as 1.8% during trading, marking its first potential record close since March 27.
The index has rebounded about 20% from a recent low of July 1, fueled by rising oil prices and fading prospects for a near-term US-Iran agreement. Energy shares had previously fallen 16% from their March peak amid easing hostilities and expectations of reduced disruptions around the Strait of Hormuz.
Brent crude climbed to $91 per barrel on Tuesday, its highest level in nearly three weeks, while 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.
US energy companies are benefiting from higher commodity prices, with Chevron's second-quarter earnings per share rising over 240% year-on-year, while ExxonMobil recorded a 115% increase. Exxon reported quarterly earnings of $14.5 billion, with Chevron posting a record $12.1 billion profit.
US refiners have also seen significant profits, with Valero Energy reporting its most profitable quarter on record and PBF Energy and HF Sinclair posting their strongest earnings in years.