While most equity traders on Monday are cramming into Gold longs to wait out the latest US-Israeli war with Iran, one segment of the US stock market is on fire — in a good way. That, of course, is the oil sector.
The State Street SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has risen 5% in Monday’s premarket after Iran responded to US and Israeli aggression by closing the Strait of Hormuz, where about 20% of global oil supply transits. This policy has dented global oil supplies, but OPEC has responded by raising daily Oil output by 411,000 barrels a day.
Already a swing producer, US production will ramp up in response over the coming weeks. But in the meantime, prices will remain high. West Texas Intermediate (WTI) has spiked over 7% to above $72 at the time of writing, its highest level since President Donald Trump and Israel launched a 12-day war against Iran back in June 2025.
Societe Generale says that the price spike could be buffered by China’s strategic reserves and potential International Energy Agency Oil stock releases.
APA (APA) and Occidental Petroleum (OXY) have risen 7% in the premarket, while Exxon Mobil (XOM) gains 5% and Chevron (CVX) adds 4%.
15-minute chart on Monday, March 2, 2026 for XOP (candlesticks), APA, OXY, CVX, XOMSource: https://www.fxstreet.com/news/us-oil-stocks-rally-after-iran-attempts-to-close-strait-of-hormuz-202603021430
