XLE is trading at $56.75 (+3.03%) as Brent crude prices surge past $80 per barrel amid escalating Middle East tensions.
- Investors are pricing in significant supply risks stemming from the US-Iran conflict near the Strait of Hormuz.
- The energy sector is seeing additional support from a broader market rotation out of tech and into cyclical value stocks.
- XLE is highly sensitive to these developments due to its 99.7% energy concentration.