Energy stocks surge as oil prices rise amid Israel-Iran tensions

Higher oil prices driven by renewed fighting between Israel and Iran have lifted energy‑related equities, making the State Street Energy Select Sector ETF (XLE) the top‑performing sector fund. The surge benefits U.S. energy companies while raising consumer costs and weighing on discretionary spending.

At the same time, investors remain wary of accelerated capital spending on artificial‑intelligence infrastructure by major tech firms. Alphabet’s earnings highlighted large AI outlays, contributing to a sell‑off in the communications sector ETF (XLC). Upcoming earnings from Microsoft, Meta, Apple and Amazon are expected to shape further market sentiment toward AI‑related stocks.