US-Iran Tensions Send Oil Prices Soaring

Oil prices surged due to renewed tensions between the US and Iran, causing energy stocks to rise. West Texas Intermediate (WTI) increased by 2.8% to $85.77 a barrel, while Brent rose 2.5% to $90.30. This uptick in crude prices has a direct impact on energy share prices, as higher revenue for producers and increased drilling activity lift the value of oil services firms.

The NYSE Energy Sector Index rose 1.9%, with the Energy Select Sector SPDR Fund (XLE) gaining around 2%. In contrast, California utility shares declined due to a reported shift in wildfire liability rules. PG&E dropped by 20%, Edison International fell 23%, and Sempra slid 3.1%, all reflecting investors' growing concern about utilities' potential for bigger cash outflows.