Energy Select Sector ETF Rises 27% to $57 After Crude Surges Above $100
Energy Select Sector SPDR has climbed from about $45 in January to over $57 as crude futures topped $100 per barrel following U.S.–Israel strikes on Iran that cut global supply by roughly 20%. Michael Burry warns spiking oil and a sliding market could risk President Trump's reelection if volatility continues.
1. Energy Select Sector ETF Performance
Energy Select Sector ETF jumped from approximately $45 in early January to over $57 by March 9, representing a roughly 27% gain as investors reposition into energy stocks. Trading volumes increased alongside the price surge, reflecting heightened demand for exposure to oil producers and service companies within the sector.
2. Crude Oil Surge and Supply Disruption
Crude oil futures topped $100 per barrel for the first time in months following U.S.–Israel strikes on Iran on February 28, which reduced global supply by about 20% through disruptions in the Strait of Hormuz. Investors have priced in protracted regional conflict risks, prompting major producers like Kuwait and the UAE to trim output.
3. Political and Market Implications
Prominent investor Michael Burry warned that simultaneous oil price spikes and equity market dips could create political hazards for President Trump if volatility persists. A sustained rise in energy costs may fuel inflationary pressures, while stock market declines could influence consumer sentiment and electoral dynamics.