US energy stocks hit record as oil tops $91 on Trump’s hard line against Iran

Mucahithan Avcioglu18 August 2026•Update: 18 August 2026US energy stocks approached a record high on Tuesday as rising oil prices and fading prospects for a near-term US-Iran agreement strengthened the earnings outlook for producers and refiners.The S&P 500 Energy Sector Index gained as much as 1.8% during trading, putting it on course for its first record close since March 27. The index has rebounded about 20% since hitting a recent low on July 1.Energy shares had fallen 16% from their March peak amid a temporary easing of hostilities and expectations that negotiations between Washington and Tehran could reduce disruptions around the Strait of Hormuz.Those expectations have since weakened after US President Donald Trump said he was not interested in extending an interim agreement with Iran, increasing concerns that restrictions on energy flows through the strategic waterway could persist.International benchmark Brent crude climbed to around $91 a barrel Tuesday, its highest level in nearly three weeks, while US benchmark West Texas Intermediate traded around $85.Oil prices have risen for three consecutive sessions.Brent has gained roughly 50% since the beginning of the year as the Middle East conflict and supply constraints have tightened global energy markets.Higher commodity prices have sharply increased profits and cash generation across the US energy industry.Chevron’s second-quarter earnings per share rose more than 240% year-on-year, while ExxonMobil recorded a 115% increase.Exxon reported quarterly earnings of $14.5 billion, while Chevron posted a record $12.1 billion profit.US refiners have also benefited from tight supplies and elevated margins. Valero Energy reported its most profitable quarter on record on a per-share basis, while PBF Energy and HF Sinclair posted their strongest earnings in years.The rally contrasted with losses in the broader US equity market Tuesday, as rising oil prices, higher Treasury yields and weakness in technology shares weighed on major indices.Energy companies, however, remain exposed to a potential decline in earnings if an agreement between Washington and Tehran eases supply risks and pushes crude prices lower.