Those comments come after the U.S. and Iran accused each other of violating the agreement. In turn, the U.S. conducted a “series of powerful strikes” against Iran in retaliation for three commercial vessels transiting the Strait of Hormuz coming under attack, as noted by CNBC.

In addition, as noted by Centcom, as also quoted by CNBC, “The U.S. strikes are in response to Iranian attacks on three commercial vessels that were transiting the Strait of Hormuz. Iran’s demonstrated aggression was unwarranted, dangerous, and a clear violation of the ceasefire.”

That’s why oil prices are just starting to gush higher again.

And that’s because any optimism created by the temporary ceasefire has been replaced by fresh concerns about potential disruptions to oil supplies. For now, the hope that the ceasefire would bring lasting stability has faded, and markets are once again watching developments in the region closely. 

How Can Investors Make Money From It?

One way is to invest in oil giants like Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX), and Occidental Petroleum (NYSE: OXY). The second way is to jump into exchange-traded funds, which allow you to diversify with a good number of energy-related names.

Here are three to consider.

ETF #1: Large-Cap Energy Exposure

SPDR Energy Select Sector ETF (NYSEARCA: XLE) 

With an expense ratio of 0.08%, the SPDR Energy Select Sector ETF provides exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries, as noted by State Street SPDR

The ETF is heavily weighted toward large, established energy giants, which account for a significant portion of its total holdings and help provide more resilience during market downturns.

Some of those holdings include Exxon Mobil, Chevron, ConocoPhillips, Williams Cos., and EOG Resources, to name just a few.

ETF #2: A Play on Oil Exploration

SPDR S&P Oil & Gas Exploration & Production ETF (NYSEAERCA: XOP)

With an expense ratio of 0.35%, the SPDR S&P Oil & Gas Exploration & Production ETF provides exposure to the oil and gas exploration and production segment of the S&P TMI, which comprises the following sub-industries: Integrated Oil & Gas, Oil & Gas Exploration & Production, and Oil & Gas Refining & Marketing, as noted by State Street SPDR.  Some of its top holdings include Callon Petroleum, SM Energy Company, Devon Energy Corporation, EOG Resources, and ConocoPhillips, for example. 

XOP also has an extremely high correlation with the price of oil, making it a suitable for investors seeking direct leverage to upward movements in crude oil prices.

ETF #3: Global Energy Exposure

iShares Global Energy ETF (NYSE Arca: IXC)

With an expense ratio of 0.40%, the iShares Global Energy ETF provides investors with broad exposure to the global energy sector by tracking the investment results of an index composed of energy-related equities from companies around the world. The fund is designed to capture the performance of large- and mid-cap companies involved in the exploration, production, refining, distribution, and servicing of energy resources, including traditional oil and gas businesses as well as integrated energy firms.

Because of its global focus, IXC provides exposure not only to U.S.-based energy companies but also to international firms, allowing investors to participate in global trends.

Which Energy ETF Is Right for You?

While investing directly in individual oil companies such as Exxon Mobil, Chevron, or Occidental Petroleum can provide targeted exposure to higher oil prices, energy ETFs offer a diversified approach by spreading exposure across multiple companies within the sector. Funds like the SPDR Energy Select Sector ETF (XLE), SPDR S&P Oil & Gas Exploration & Production ETF (XOP), and iShares Global Energy ETF (IXC) provide investors with different ways to participate in potential energy market strength.

This morning, oil was up by $1.76 at $89.92, and could gush to $150 if the Iranian war doesn’t end soon, as noted by Claudio Galimberti, chief economist at Rystad Energy, as quoted by CNBC. “At this point, unless we solve [the Middle East conflict], unless we start to see an increase in the flow, then we are going to see lower and lower inventories, which means higher and higher prices,” Galimberti added.

Not helping, Exxon Mobil just warned that oil inventories will hit “really, really low levels” in coming weeks with the conflict. “We’re approaching unheard of inventory levels,” said Exxon Senior Vice President Neil Chapman. “I mean really, really low levels. You can debate whether that’s going to hit, those really low levels, in two weeks or three weeks. Once you get to that point, then you’ll see price shoot up.”

And, according to Trump on social media, “They’ve taken too long to negotiate a deal that would have been great for them, now they will have to pay the price.”

A $150 Oil Scenario Is No Longer Unthinkable

But at this point, it could easily happen with war intensifying again, and with reserves dropping to historically low levels. 

That being said, investors can always jump into oil stocks, such as Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX), and Occidental Petroleum (NYSE: OXY). However, if you want greater exposure at a lower cost, investors may want to consider exchange-traded funds, such as:

XLE Remains a Top Energy ETF to Watch

With an expense ratio of 0.08%, the SPDR Energy Select Sector ETF (NYSE: XLE) provides exposure to companies in the oil, gas, and consumable fuel, energy equipment, and services industries, as noted by State Street SPDR. From its current price of $57.39, we’d like to see it rally back to $62 initially, with the war showing signs of intensifying again. 

Higher Crude Prices Could Lift XOP

With an expense ratio of 0.35%, the SPDR S&P Oil & Gas Exploration & Production ETF (NYSE: XOP) provides exposure 51 oil and gas exploration and production segment of the S&P TMI, which comprises the following sub-industries: Integrated Oil & Gas, Oil & Gas Exploration & Production, and Oil & Gas Refining & Marketing, as noted by State Street SPDR.  From its current price of $164.05, we’d like to see the XOP ETF retest $190.

IXC Provides Global Energy Exposure

With an expense ratio of 0.40%, the iShares Global Energy ETF (NYSE: IXC) tracks the investment results of an index composed of global equities in the energy sector. Some of its 50 holdings include Exxon Mobil, Chevron Corporation, BP PLC, Total SA, and EOG Resources. From its current price of $53.94, we’d like to see it retest $58 initially.

Navigating Today’s Oil Market

With geopolitical tensions showing few signs of easing and supply concerns mounting, investors will likely continue to keep a close eye on oil prices in the weeks ahead. For those looking to position themselves for further upside without betting on a single company, energy-focused ETFs can provide diversified exposure to a sector that could remain in focus as global uncertainty drives commodity markets higher.

And while President Trump is determined to reach a deal, officials in Israel say that it’s unlikely that Iran would agree to U.S. demands. 

Sure, the idea of positive talks between Iran and the U.S. sent markets screaming higher yesterday. However, “No negotiations have been held with the US,” Mohammad Bagher Qalibaf, the speaker of Iran’s parliament, said, as quoted by the Associated Press. “And fakenews is used to manipulate the financial and oil markets and escape the quagmire in which the US and Israel are trapped.”

That’s creating even more uncertainty, with investors unsure of what’s really happening. As we all know, markets hate uncertainty, which is why markets are red again. Adding to that uncertainty, analysts at Citigroup (NYSE: C) believe oil could eventually test $200.

“We posit that the ongoing loss of energy supply to [the] global economy is so large (larger than the shocks of the 1970s as a share of oil supply) that it simply must be solved, either militarily or diplomatically, and that through various potential channels this occurs by mid-late April,” said the firm, as quoted by MarketWatch.com.

The firm expects things to only get worse, with Brent possibly running to at least $120 over the next month. If we see prolonged energy production through June, $200 oil could become a reality. “They come up with that number based on the typical relationship between inventory and price, given the world is now without 13.5 million barrels per day, taking out some 400 million barrels per month, due to Strait of Hormuz disruptions,” added MarketWatch.com.

That would aggressively force oil stocks and ETFs higher until demand destruction sets in.

So, what’s the best way to trade the news?

Investors can always jump into Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX), and Occidental Petroleum (NYSE: OXY). However, if you want to diversify at a lower cost, ETFs offer good value.  In fact, here are three energy ETFs pushing higher with oil that we’ve been pounding the table over for months.

SPDR Energy Select Sector ETF (XLE)

With an expense ratio of 0.09%, the Energy Select Sector SPDR Fund (NYSEARCA: XLE) provides exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries, as noted by State Street SPDR. Since February 20, the XLE ETF has run from about $54.50 to a high of $59.80.

SPDR S&P Oil & Gas Exploration & Production ETF (XOP)

With an expense ratio of 0.35%, the SPDR S&P Oil & Gas Exploration & Production ETF (NYSEARCA: XOP) provides exposure to 51 stocks in the oil and gas exploration and production segment of the S&P TMI, which comprises the following sub-industries: Integrated Oil & Gas, Oil & Gas Exploration & Production, and Oil & Gas Refining & Marketing, as noted by State Street SPDR. Since February 20, the XOP ETF has run from about $150 to $175.

iShares Global Energy ETF (IXC)

With an expense ratio of 0.40%, the iShares Global Energy ETF (NYSEARCA: IXC) seeks to track the investment results of an index composed of global equities in the energy sector. Some of its 50 holdings include Exxon Mobil, Chevron Corporation, BP PLC (NYSE: BP), Total SA, and EOG Resources (NYSE: EOG). Since February 20, the IXC ETF has run from about $50.60 to $55.90 so far.

Best Energy ETFs to Watch as Oil Prices Rise

With geopolitical tensions showing no sign of easing and oil prices under continued pressure from Strait of Hormuz disruptions, energy ETFs remain one of the most compelling opportunities in the market. XLE, XOP, and IXC have all demonstrated strong momentum since late February, and analysts warn that further price spikes could push these funds even higher.

For investors seeking diversified exposure to rising oil prices without picking individual stocks, energy ETFs offer a cost-effective, flexible solution worth watching closely.

At this point, it all depends on what happens next in the U.S.-Iran war and with the blocked Strait of Hormuz. It’s not ideal to have 20% of the world’s daily oil consumption held in limbo. Making it worse, Middle East countries are cutting oil production. Kuwait announced precautionary cuts to oil production because of “Iranian threats against safe passage of ships through the Strait of Hormuz,” as quoted by CNBC.

Adding to the supply side woes, Iraq’s production has fallen apart. Production from its three main oilfields fell 70% to 1.3 million.  Prior to the war with Iran, those fields were pumping out 4.3 million bpd. This is happening because Iraq is running out of storage space, which ties back to the Strait of Hormuz.

According to Iran, “If you can tolerate the price of oil exceeding $200 per barrel, continue this game,” added Ebrahim Zulfikari, spokesperson for the Hatem al-Anbiya Central Headquarters of the Islamic Revolutionary Guard Corps (IRGC), as quoted by AzerNews.

Some would say that’s just blustery talk from a country that is under attack. However, a defiant Iran just ramped up its strikes, hitting three cargo ships in the Strait of Hormuz. It will be interesting to see what happens next with oil, with the International Energy Agency proposing the largest release of oil reserves in its history to bring down crude prices.

As noted by The Wall Street Journal, “The release of 400 million barrels of oil would more than double the agency’s biggest prior release, when IEA member countries in 2022 put 182 million barrels on the market after Russia launched its full-scale invasion of Ukraine, the officials said. The proposal was circulated at an emergency meeting of energy officials from the IEA’s 32-member countries on Tuesday. Countries are expected to decide on the proposal on March 11. It would be adopted if none object, but even one country’s protests could delay the plan.”

So What’s the Best Way to Trade the News

Investors can always jump into Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX), and Occidental Petroleum (NYSE: OXY). However, if you want to diversify at a lower cost, ETFs offer good value.  In fact, here are three energy ETFs pushing higher with oil that we’ve been pounding the table over for months.

SPDR Energy Select Sector ETF (XLE)

With an expense ratio of 0.09%, the SPDR Energy Select Sector ETF (NYSEARCA: XLE) provides exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries, as noted by State Street SPDR. Since February 20, the XLE ETF has run from about $54.50 to a high of $55.60 so far.

SPDR S&P Oil & Gas Exploration & Production ETF (XOP)

With an expense ratio of 0.35%, the SPDR S&P Oil & Gas Exploration & Production ETF (NYSEARCA: XOP) provides exposure to 51 oil and gas companies in the exploration and production segment of the S&P TMI, which comprises the following sub-industries: Integrated Oil & Gas, Oil & Gas Exploration & Production, and Oil & Gas Refining & Marketing, as noted by State Street SPDR. Since February 20, the XOP ETF has run from about $150 to $159.

iShares Global Energy ETF (IXC)

With an expense ratio of 0.40%, the iShares Global Energy ETF (NYSEARCA: IXC) seeks to track the investment results of an index composed of global equities in the energy sector. Some of its 50 holdings include Exxon Mobil, Chevron Corporation, BP PLC, Total SA, and EOG Resources. Since February 20, the IXC ETF has run from about $50.60 to $52 so far.

Energy ETFs Offer a Simple Way to Play the Oil Spike

For investors looking to capitalize on rising oil prices without betting on a single company, energy ETFs provide a straightforward solution. Funds like XLE, XOP, and IXC offer diversified exposure across major oil producers, exploration companies, and global energy giants that tend to benefit when crude prices surge.

If tensions in the Middle East continue and the Strait of Hormuz remains under threat, oil markets could stay volatile with an upward bias. In that environment, broad-based energy ETFs allow investors to participate in the upside while reducing company-specific risk. For traders expecting oil to remain elevated—or even spike to extreme levels—these funds may remain among the most efficient ways to gain exposure to the energy sector.

With speculation of a potential conflict with Iran, oil prices are up another $1.31 to $66.50. And depending on whether we go to war and what could potentially happen in the Strait of Hormuz, investors may want to jump into potential oil war stocks.

We have to consider that Iran is one of the world’s leading suppliers, with its government making it clear that it will retaliate if the U.S. attacks. This could eventually lead to a full blockage of the Strait of Hormuz or restricted access.

• Iranian leaders have warned that any U.S. attack could spark a regional war.
• Iran could use allied militias and proxy groups to attack U.S. allies and interests throughout the Middle East.
• The Strait of Hormuz, a chokepoint for about 20 million barrels of oil per day of global supply, could be targeted, threatening global flow.

In the U.S., “Top national security officials have told Mr. Trump the U.S. military is ready for potential strikes on Iran as soon as Saturday, but the timeline for any action is likely to extend beyond this weekend, sources familiar with the discussions told CBS News, adding that President Trump had not yet made a final decision about whether to strike Iran.”

We should also consider that any conflict between the U.S. and Iran would probably be larger and longer than a few days, potentially a multi-week campaign rather than a quick strike, which would create significant upside potential for oil.

Not only are oil stocks, such as Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX), gushing higher on speculation of war, but so are related ETFs such as the Energy Select Sector SPDR ETF (NYSEARCA: XLE).

Why You Need to Be Cautions With Oil War Stocks

The last time the U.S. hit Iran was in late June 2025, when the U.S. carried out air and missile strikes on several of Iran’s nuclear facilities — including the Fordow, Natanz, and Isfahan sites — as part of the broader conflict involving Iran and Israel. 

Prior to the attack, oil traded at about $60, spiking to about $78 before plummeting back to earth following the nuclear facilities’ attack. 

We could see a similar situation play out this time, as well.

Unfortunately, it’s a wait-and-see at this point. Right now, simply on speculation of an attack on Iran, investors may want to consider a position in Exxon Mobil or Chevron. Or, to take an all-of-the-above approach, here are three ETFs to consider.

Oil War Stocks: SPDR Energy Select Sector ETF (XLE)

With an expense ratio of 0.09%, the Energy Select Sector SPDR Fund ETF (NYSEARCA: XLE) provides exposure to companies in the oil, gas, and consumable fuel, energy equipment, and services industries.

The ETF is heavily weighted toward large, established energy giants, which account for a significant portion of its total holdings and help provide more resilience during market downturns. Plus, not only does an ETF allow for diversification, but you can buy it for less than $47 a share, which, by the way, is cheaper than most of the ETFs 2 holdings.

Some of those holdings include Exxon Mobil, Chevron, ConocoPhillips (NYSE: COP), Williams Cos. (NYSE: WMB), and EOG Resources (NYSE: EOG).

Oil War Stocks: SPDR S&P Oil & Gas Exploration & Production ETF (XOP)

With an expense ratio of 0.35%, the SPDR S&P Oil & Gas Exploration & Production ETF (NYSEARCA: XOP) ETF provides exposure to 51 oil and gas exploration and production segment of the S&P TMI, which comprises the following sub-industries: Integrated Oil & Gas, Oil & Gas Exploration & Production, and Oil & Gas Refining & Marketing, as noted by State Street SPDR. 

Some of the fund’s top holdings include Callon Petroleum (NYSE: CPE), SM Energy Company (NYSE: SM), Devon Energy Corp. (NYSE: DVN), EOG Resources, and ConocoPhillips. 

XOP also has an extremely high correlation with the price of oil, making it a suitable choice for investors seeking direct leverage to upward movements in crude oil prices.

Oil War Stocks: iShares Global Energy ETF (IXC)

With an expense ratio of 0.40%, The iShares Global Energy ETF (NYSEARCA: IXC) seeks to track the investment results of an index composed of global equities in the energy sector. Some of its 50 holdings include Exxon Mobil, Chevron Corporation, BP PLC (NYSE: BP), Total SA, and EOG Resources.

It’s also one of the few options for investors seeking global exposure to the energy sector, including significant holdings in U.S., Canadian, and European companies like Exxon Mobil and Shell. Also, much like the other two ETFs above, the IXC also pays a dividend.