"Oil futures touched $100 per barrel this week as Iran's new Supreme Leader Mojtaba Khamenei vowed to keep the Strait of Hormuz closed, the waterway through which a fifth of the world's oil and liquefied natural gas transits. The International Energy Agency called the conflict the biggest-ever disruption to oil supply, and Iran's security chief has stated the war won't end soon."
"WTI crude, which bottomed near $55 per barrel in December 2025, has surged to nearly $95 as of March 9. The speed of that move, not just the level, is what makes the current setup consequential for energy investors."
"The Energy Select Sector SPDR Fund is the most straightforward way to own the companies that print money when oil is expensive. With 99% of the portfolio in energy and ExxonMobil and Chevron together representing about 41% of holdings, XLE offers direct exposure to the earnings power of integrated oil majors."
Oil prices surged from $55 in December 2025 to nearly $95 by March 9, driven by geopolitical tensions in the Middle East. Iran's new Supreme Leader threatened to close the Strait of Hormuz, through which one-fifth of global oil and liquefied natural gas transits. The International Energy Agency characterized this as the largest supply disruption on record. Four investment vehicles provide different exposures to elevated oil prices: XLE offers direct exposure to integrated oil majors like ExxonMobil and Chevron; a global energy fund provides international diversification; a midstream pipeline fund captures infrastructure benefits; and an MLP-focused mutual fund targets pipeline infrastructure. XLE has gained 27% year-to-date and 35% over one year, reflecting how integrated oil company earnings respond to sustained price increases.
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