# Oil Spikes on Strait of Hormuz Threat
Crude oil surged today after Iranian officials threatened to close the Strait of Hormuz. Approximately 20% of global oil supply passes through that chokepoint.
WTI crude jumped 3.2% on the headline. $XLE (Energy Select Sector ETF) was the best-performing sector today while the broader market sold off on the news.
$XOM and $CVX both traded higher on heavy volume. The energy sector has been a consistent outperformer in 2026, and geopolitical risk provides another catalyst.
The situation is fluid. President Trump has made statements regarding potential military response, which adds another layer of uncertainty.
For traders, energy stocks are a hedge against geopolitical escalation. If tensions ease, energy gives back gains but the broader market rallies. If tensions escalate, energy outperforms while everything else sells.
That asymmetry makes $XLE interesting here.
#OilPrices #Geopolitics #Energy #MiddleEast #CrudeOil
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