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Oil Leads Energy Stocks Higher

The best sector in the S&P 500 this year is up 49%.

Author

Jacob Radke
October 11, 2026 • Read Time: 1 minute

Oil Leads Energy Stocks Higher

Energy is the best performing sector in the S&P 500 this year. It's up 49% through Friday, while the S&P 500 is up 15%.

On February 28 the war with Iran began and the Strait of Hormuz, which carries about a fifth of the world's oil, effectively closed. By the end of March, Brent crude had nearly doubled to $118.

A June ceasefire partly reopened the strait and oil fell back to $72 per barrel. Then on July 8 the ceasefire broke, the strait closed again, and oil rallied back to $105 per barrel.

Line chart of 2026 year-to-date total return: energy stocks up 49% and the S&P 500 up 15% through Oct. 9, with Brent crude below, rising from $61 to a $118 peak in March, falling to $72 in July and back to $105. Markers show the Feb. 28 start of the war with Iran and the July 8 ceasefire collapse.

Energy is the one part of the market that gets paid when an oil shock like this one hits. At the oil peak in March, the S&P 500 was down 4% on the year and energy was up 38%.

Until next week,
Jacob