Oil Surges 8% to $72, Energy ETF Gains 4% on Iran Strikes
WTI futures jumped 8% to $72 per barrel after U.S. and Israeli strikes on Iran, lifting the Energy Select Sector SPDR Fund 4% and highlighting risks to 20 million barrels through the Strait of Hormuz. Choppy market-weight indices versus record equal-weight highs plus robust 2026 forecasts create mixed ETF sentiment.
1. Oil Price Surge
West Texas Intermediate futures climbed over 8% to roughly $72 per barrel after coordinated U.S. and Israeli strikes killed Supreme Leader Ayatollah Ali Khamenei, stoking fears of broader conflict and immediate supply disruption.
2. Strait of Hormuz Risk
Approximately 20 million barrels per day transit the Strait of Hormuz—about 20% of global oil demand—and any interference could severely tighten supplies, especially for Asia, which sources over half of its imports via this chokepoint.
3. ETF Performance and Market Context
The Energy Select Sector SPDR Fund rose 4% in premarket trading, led by APA Corp’s 8.5% gain, Occidental Petroleum’s 7.2% advance and Devon Energy’s 6.2% jump, while volatility in market-weight indices contrasts with record equal-weight highs and strong 2026 earnings projections.