Trump’s Iran Threat Reignites Oil Rally — These Energy Stocks Are Surging

Oil prices jumped on Wednesday after renewed geopolitical fears tied to President Donald Trump‘s escalatory language toward Iran boosted risk premiums in global crude markets.

Futures on West Texas Intermediate crude rose about 1% to nearly $63 a barrel, touching their highest levels since late September 2025. Brent crude also advanced, climbing to around $68 a barrel.

Oil Prices Rally on Escalating Iran Tension

In a post on social media, Trump said a “massive armada,” including the USS Abraham Lincoln and guided‑missile destroyers, is headed toward Iran — stirring supply disruption fears through global energy chokepoints such as the Strait of Hormuz.

Trump added the naval force was “ready, willing, and able to rapidly fulfill its mission, with speed and violence, if necessary,” while urging Iran to negotiate what he called a fair deal to avoid nuclear escalation.

WTI crude is up more than 9% this month, extending gains for a sixth consecutive week and putting the market on track to snap a five-month losing streak, while marking its strongest monthly performance since July 2023.

Beyond geopolitics, U.S. supply disruptions — including output cutbacks from severe winter weather — have tightened near-term balances.

Last week’s winter storm knocked out significant barrels of production, particularly in the Gulf Coast and inland shale regions, slowing restarts and creating more short-term supply pressure.

A weaker US dollar — sliding toward multi-week lows — further supported oil’s appeal by making dollar-priced commodities cheaper for foreign buyers.

Energy Stocks Jump With Oil

U.S. energy equities have been among the best-performing sectors as oil rebounded.

The Energy Select Sector SPDR Fund (NYSE:XLE), which tracks large U.S. energy companies, is up 11% this month, outperforming all other S&P 500 sectors. For the month, energy stocks are on pace for their best performance since late 2022.

Within the XLE ETF, here are the top seven performing names year-to-date:

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