ProShares Ultra Bloomberg Crude Oil (ARCA: UCO)

Ultime notizie per ProShares Ultra Bloomberg Crude Oil (ARCA:UCO)

The index aims to track the performance of 3 separate contract schedules for WTI Crude Oil futures. One-third of the index follows a monthly roll schedule two months beyond the nearby contract. The second third of the index follows a June annual roll schedule, while the remaining third follows a December annual roll schedule. The index is not linked to the spot price of WTI crude oil.

ProShares Ultra Bloomberg Crude Oil

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Shock petrolifero? L&#39;economia USA ora reagisce in modo diverso. Come cambiano i rischi e le opportunità di investimento nel settore.

Petrolio: come investire ora che le vecchie regole non valgono più

President Donald Trump escalated pressure on Moscow on Tuesday, declaring the United States would impose tariffs and sanctions on Russia within 10 days unless significant progress occurs toward ending the three-year Ukraine conflict.
Speaking aboard Air Force One, Trump confirmed he had shortened his initial 50-day deadline announced last month, telling reporters he received no response from Russian President Vladimir Putin. &#8220;We&#8217;re going to put on tariffs and the various things that you put on,&#8221; Trump stated, according to Reuters.
<h2 class="wp-block-heading">Will Trump's Ultimatum Shift Oil Markets?</h2>
The ultimatum carries significant market implications as investors monitor potential disruptions to global oil supplies. Russia remains a major energy exporter despite existing sanctions, with crude oil futures showing volatility ahead of potential additional restrictions.
Trump dismissed concerns about the oil market impact, pledging to boost domestic production to offset any supply disruptions. &#8220;I don&#8217;t know if it&#8217;s going to affect Russia, because (Putin) wants to, obviously, probably keep the war going,&#8221; he said.
WTI crude oil futures hovered above $69 per barrel on Wednesday, while Brent crude traded around $72.50, with both benchmarks holding at five-week highs amid signs of tightening supply and resilient demand.
<h2 class="wp-block-heading">Energy-Related ETFs Saw Modest Fluctuation:</h2>
<ul class="wp-block-list">
<li>iShares U.S. Oil &amp; Gas Exploration &amp; Production ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEO#BATS">IEO</a>) closed at $92.43 on Tuesday, up 0.91%, and edged slightly higher in after-hours trading to $92.50.</li>
<li>United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) jumped 3.41% to close at $79.80, before dipping 0.21% overnight to $79.63.</li>
<li>ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) surged 5.42% to $26.28 at the close, holding steady overnight at $26.26.</li>
</ul>
<h2 class="wp-block-heading">Are China's Tariffs The Next Global Shockwave?</h2>
Treasury Secretary Scott Bessent revealed during bilateral talks this week that he warned Chinese officials that Beijing could face high tariffs if Russian oil purchases continue. The secondary sanctions threat targets countries purchasing Russian exports, potentially affecting global commodity flows.
See Also: <a href="https://www.benzinga.com/markets/earnings/25/07/46712908/trump-trade-deals-to-aid-600-billion-boeing-backlog-as-q2-reveals-tariffs-becoming-less-of-a-headwind">Trump Trade Deals To Aid $600 Billion Boeing Backlog As Q2 Reveals Tariffs Becoming Less Of A Headwind</a>
<h2 class="wp-block-heading">Can Trump's Ultimatum Alter Russia's Strategy?</h2>
The president&#8217;s frustration with Moscow&#8217;s ceasefire refusal marks a shift from his previous hesitation on sanctions implementation. Trump has previously touted his relationship with Putin but recently called him &#8220;absolutely crazy&#8221; <a href="https://www.benzinga.com/news/politics/25/07/46269242/russian-president-vladimir-putin-reminds-historic-special-relations-with-us-against-the-uk-we-found-things-that-united-us">following Russian airstrikes on Ukraine</a>.
Former Russian President Dmitry Medvedev, a Putin ally, responded on X that Trump was playing &#8220;a game of ultimatums&#8221; that could escalate into U.S. involvement in war.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Trump&#39;s playing the ultimatum game with Russia: 50 days or 10… He should remember 2 things: 1. Russia isn&#39;t Israel or even Iran. 2. Each new ultimatum is a threat and a step towards war. Not between Russia and Ukraine, but with his own country. Don&#39;t go down the Sleepy Joe road!
&mdash; Dmitry Medvedev (@MedvedevRussiaE) <a href="https://twitter.com/MedvedevRussiaE/status/1949870764938711343?ref_src=twsrc%5Etfw">July 28, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
The 10-day deadline coincides with ongoing diplomatic tensions. Putin recently emphasized historical U.S.-Russia cooperation <a href="https://www.benzinga.com/news/politics/25/07/46269242/russian-president-vladimir-putin-reminds-historic-special-relations-with-us-against-the-uk-we-found-things-that-united-us">during the American independence and Civil War periods</a>, telling Russian television the nations &#8220;have always had very good and special relations.&#8221;
Read Next: 
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/news/events/25/07/46711140/trump-issues-tsunami-warning-after-massive-pacific-earthquake-hawaii-us-west-coast-japan-on-alert">Trump Issues Tsunami Warning After Massive Pacific Earthquake: Hawaii, US West Coast, Japan On Alert</a></li>
</ul>
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock

Politics

iShares Dow Jones US Oil & Gas Exploration & Production Index Fund

Trump To Russia: End Ukraine War In 10 Days Or Face Tariffs — Oil Approaches $70

A newly finalized trade agreement between the <a href="https://www.benzinga.com/news/politics/25/07/46650830/donald-trump-announces-15-tariff-trade-agreement-with-eu-ending-months-of-trade-uncertainty">U.S. and the European Union</a> is poised to significantly benefit U.S.-based LNG exporters, the Magnificent 7 technology giants, and the broader tech sector, according to market experts.
What Happened: The <a href="https://www.benzinga.com/news/politics/25/07/46650830/donald-trump-announces-15-tariff-trade-agreement-with-eu-ending-months-of-trade-uncertainty">deal</a>, announced ahead of the Aug. 1 deadline, is seen as removing a key layer of uncertainty that had hung over the markets. 
Louis Navellier, founder and chief investment officer of Navellier &amp; Associates, told <a href="http://pro.benzinga.com/dashboard">Benzinga</a> that LNG exporters such as Dorian LPG Ltd. as likely winners. He noted that &#8220;the analyst community is revising their earnings estimates higher&#8221; for these companies.
The trade deal includes the EU's commitment to purchase $750 billion in U.S. energy over three years and invest another $600 billion in the U.S. economy.
Navellier also pointed to the &#8220;Magnificent 7 and other big U.S. technology companies&#8221; as beneficiaries, anticipating that &#8220;the EU is expected to be more reluctant to hit them with digital taxes&#8221; under the Donald Trump Administration.
The agreement&#8217;s impact extends to the overall U.S. stock market. Chris Zaccarelli, chief investment officer at Northlight Asset Management, told Benzinga that he views the deal as &#8220;good for US markets as it removes some of the uncertainty that was an overhang for the market, and at a 15% rate, it is lower than what was originally feared.&#8221;
Zaccarelli reiterated the positive outlook for technology and emphasized the energy sector, stating it &#8220;will be an even bigger beneficiary because of the intent of the EU to buy more energy from the United States as a result of the new trade deal.&#8221;
While the deal brings clarity, some of the positive news may have already been factored into stock prices. Zaccarelli noted, &#8220;news of this deal being &#8216;close&#8217; was released last week and some of the good news was likely already reflected in prices before today's official announcement.&#8221;
Here&#8217;s a list of the energy and technology sector beneficiaries highlighted by experts;
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>Energy Stocks</td>
<td>YTD Performance</td>
<td>One-Year Performance</td>
</tr>
<tr>
<td>Exxon Mobil Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>)</td>
<td>3.85%</td>
<td>-4.01%</td>
</tr>
<tr>
<td>Chevron Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>)</td>
<td>6.52%</td>
<td>-0.20%</td>
</tr>
<tr>
<td>Occidental Petroleum Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>)</td>
<td>-8.55%</td>
<td>-24.31%</td>
</tr>
<tr>
<td>EOG Resources Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EOG#NYSE">EOG</a>)</td>
<td>-2.45%</td>
<td>-2.82%</td>
</tr>
<tr>
<td>Marathon Petroleum Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MPC#NYSE">MPC</a>)</td>
<td>23.54%</td>
<td>1.65%</td>
</tr>
<tr>
<td>CVR Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVI#NYSE">CVI</a>)</td>
<td>52.93%</td>
<td>6.69%</td>
</tr>
<tr>
<td>Schlumberger NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>)</td>
<td>-6.25%</td>
<td>-24.78%</td>
</tr>
<tr>
<td>Dorian LPG Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LPG#NYSE">LPG</a>)</td>
<td>18.02%</td>
<td>-25.71%</td>
</tr>
</tbody>
</table>
</figure>
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>Energy ETFs</td>
<td>YTD Performance</td>
<td>One-Year Performance</td>
</tr>
<tr>
<td>United States Oil Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>)</td>
<td>0.31%</td>
<td>2.63%</td>
</tr>
<tr>
<td>ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>)</td>
<td>-11.66%</td>
<td>-16.09%</td>
</tr>
<tr>
<td>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>)</td>
<td>-2.89%</td>
<td>-8.66%</td>
</tr>
</tbody>
</table>
</figure>
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>Big Tech Stocks And ETF</td>
<td>YTD Performance</td>
<td>One-Year Performance</td>
</tr>
<tr>
<td>Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)</td>
<td>27.79%</td>
<td>58.39%</td>
</tr>
<tr>
<td>Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>)</td>
<td>-12.22%</td>
<td>-1.92%</td>
</tr>
<tr>
<td>Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>)</td>
<td>22.44%</td>
<td>20.10%</td>
</tr>
<tr>
<td>Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>)</td>
<td>5.71%</td>
<td>27.07%</td>
</tr>
<tr>
<td>Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)</td>
<td>1.46%</td>
<td>13.03%</td>
</tr>
<tr>
<td>Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>)</td>
<td>19.76%</td>
<td>54.09%</td>
</tr>
<tr>
<td>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)</td>
<td>-14.16%</td>
<td>40.28%</td>
</tr>
<tr>
<td>Roundhill Magnificent Seven ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#BATS">MAGS</a>)</td>
<td>7.46%</td>
<td>31.23%</td>
</tr>
</tbody>
</table>
</figure>
See Also: <a href="https://www.benzinga.com/markets/equities/25/07/46679779/opendoor-skyrockets-314-in-a-month-amid-meme-stock-mania-hedge-fund-manager-who-reaped-windfall-">Opendoor Skyrockets 314% In A Month Amid Meme Stock Mania: Hedge Fund Manager Who Reaped Windfall Gains Says &#8216;I&#8217;m Not Here To Pump Up A Stock&#8217;</a>
Why It Matters: Looking ahead, experts believe the Aug. 1 deadline is largely being adhered to, providing further market certainty.
However, major outstanding trade negotiations include China, where Treasury Secretary Scott Bessent is reportedly in talks to extend the Aug. 14 deadline, and continuing discussions with Mexico and Canada.
Smaller deals with other nations are also anticipated to be finalized by the end of this week.
Price Action: The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, ended on a mixed note on Monday. The SPY was down 0.025% at $636.94, while the QQQ advanced 0.31% to $568.14, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
On Tuesday, the futures of the Dow Jones, S&amp;P 500, and Nasdaq 100 indices were trading higher.
Read Next:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/equities/25/07/46657284/palantirs-next-stop-is-200-says-jim-cramer-as-pltr-glides-like-a-knife-through-butter" target="_blank" rel="noreferrer noopener">Palantir's Next Stop Is $200, Says Jim Cramer As PLTR Glides ‘Like A Knife Through Butter'</a></li>
</ul>
Photo courtesy: Shutterstock

Equities

AAPL

AMZN

GOOG

MAGS

MSFT

NVDA

TSLA

Trump's EU Deal 'Good For US Markets,' Say Experts: META, AAPL, PLTR Among Likely Winners — See Full List

As the U.S. Senate considers the Sanctioning Russia Act of 2025, economist Craig Shapiro has raised alarms about its potential to disrupt American markets and the global economy.
What Happened: In a post on X early Friday, Shapiro, macro strategist at the Bears Trap Report, highlighted a looming "major statement" from President Donald Trump <a href="https://www.benzinga.com/news/politics/25/07/46360686/trump-to-make-a-major-statement-on-russia-on-monday-amid-escalating-ukraine-conflict-im-disappointed">on Monday regarding Russia</a>, tied to the bipartisan bill spearheaded by Senators Lindsey Graham and Richard Blumenthal, which now enjoys support from over 80 senators.
The act's centerpiece is a 500% tariff on Russian-origin goods and services, with secondary sanctions targeting nations like China and India—key buyers of Russian energy.
Shapiro warned, "If Trump moves forward with the Senate sanctions bill, which includes secondary sanctions of 500% on China and India as they are buyers of Russian energy, it is going to have major negative implications for the global economy very quickly."
He added that this could jolt energy stocks, given Russia's role in global oil markets.
The energy sector faces a ban on U.S. exports to Russia and secondary sanctions on foreign entities aiding Russian oil and gas, while financial measures prohibit U.S. transactions with Russia except under specific licenses.
He emphasized the tariff's scope, stating that there will be a 500% tariff on imports from any country like India or China, knowingly trading in Russian oil, gas, uranium, petroleum, or petrochemicals, etc.
&#8220;This bill is a sweeping escalation, combining targeted sanctions and sweeping economic measures—especially secondary actions—to isolate Russia financially, hit its global energy revenue, and deter allies from shoring up its economy,&#8221; he said.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Potential big news coming from Trump on Monday as he plans to make a "major statement" on Russia, as the US prepares to send a volley of new American weapons to Ukraine via purchases from NATO allies. "I think I'll have a major statement to make on Russia on Monday," Trump told…
&mdash; Craig Shapiro (@ces921) <a href="https://twitter.com/ces921/status/1943478531012403211?ref_src=twsrc%5Etfw">July 11, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
See Also: <a href="https://www.benzinga.com/markets/equities/25/07/46361386/bitcoin-breaches-118k-but-these-btc-mining-firms-are-still-priced-like-its-at-58k-heres-how-these-mining-stocks-could-explode">Bitcoin Breaches $118K, But These BTC Mining Firms Are Still Priced Like It&#8217;s At $58K: Here&#8217;s How These Mining Stocks Could Explode</a>
Why It Matters: These are a few oil and energy companies that could be impacted by the &#8216;US Sanctioning Russia Act of 2025&#8217;.
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>Stocks</td>
<td>YTD Performance</td>
<td>One-Year Performance</td>
</tr>
<tr>
<td>Exxon Mobil Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>)</td>
<td>7.10%</td>
<td>1.48%</td>
</tr>
<tr>
<td>Chevron Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>)</td>
<td>5.08%</td>
<td>-0.70%</td>
</tr>
<tr>
<td>Occidental Petroleum Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>)</td>
<td>-7.95%</td>
<td>-25.42%</td>
</tr>
<tr>
<td>EOG Resources Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EOG#NYSE">EOG</a>)</td>
<td>-2.39%</td>
<td>-5.02%</td>
</tr>
<tr>
<td>Marathon Petroleum Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MPC#NYSE">MPC</a>)</td>
<td>28.81%</td>
<td>10.94%</td>
</tr>
<tr>
<td>CVR Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVI#NYSE">CVI</a>)</td>
<td>73.00%</td>
<td>31.75%</td>
</tr>
<tr>
<td>Schlumberger NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>)</td>
<td>-4.56%</td>
<td>-20.65%</td>
</tr>
</tbody>
</table>
</figure>
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>ETFs</td>
<td>YTD Performance</td>
<td>One-Year Performance</td>
</tr>
<tr>
<td>United States Oil Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>)</td>
<td>-2.00%</td>
<td>-6.86%</td>
</tr>
<tr>
<td>ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>)</td>
<td>-16.58%</td>
<td>-30.70%</td>
</tr>
<tr>
<td>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>)</td>
<td>-1.88%</td>
<td>-9.22%</td>
</tr>
</tbody>
</table>
</figure>
Price Action: The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, were lower in premarket on Friday. The SPY was down 0.49% at $622.78, while the QQQ declined 0.44% to $552.98, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
Read Next:
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<li><a href="https://www.benzinga.com/news/25/07/46352406/as-trump-calls-for-3-percentage-point-rate-cut-too-late-jerome-powell-to-resign-june-fed-minutes-sho" target="_blank" rel="noreferrer noopener">As Trump Calls For 3-Percentage Point Rate Cut, ‘Too Late&#8217; Jerome Powell To Resign, June Fed Minutes Show ‘Uncertainty&#8217; Reigns Supreme</a></li>
</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image Via Shutterstock

US 500% Tariff On Russia Can Rattle Energy Stocks And Have 'Major Negative Implications' On Global Economy, Says Craig Shapiro

<a href="https://www.benzinga.com/topic/oil">Oil markets</a> are again in the crosshairs of geopolitics. West Texas Intermediate crude prices rose more than 3% on Thursday to reach above $77 a barrel, with the tensions between Israel and Iran erupting and the world anxiously waiting to see if America would enter the conflict. Merchants are preparing for an escalation, particularly after the previous President Donald Trump ambiguously responded to reporters by saying, &#8220;I may do it. I may not,&#8221; when asked if America would attack Iran.
The consequence: A significant geopolitical risk premium of around $10 per barrel according to Goldman Sachs, has established itself, spurring fresh interest in oil and energy-themed ETFs as tactical plays and defensive strategies alike.
Also Read: <a href="https://www.benzinga.com/markets/commodities/25/06/46016660/oil-prices-jump-european-markets-plummet-as-us-iran-tensions-rise-whats-driving-markets-thursday">Oil Prices Jump, European Markets Plummet As US-Iran Tensions Rise: What&#8217;s Driving Markets Thursday?</a>
<h2 class="wp-block-heading">ETF Market Moves: Flows, Premiums, And Positioning</h2>
As volatility for oil surges, investors are using <a href="https://www.benzinga.com/etfs">liquid and leveraged ETFs </a>to register their opinions, or hedge their exposure.
United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), the biggest oil ETF to track WTI futures, witnessed gains of more than 11% in the past five days as oil prices rose.
Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), a wide energy sector play supported by ExxonMobil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) and Chevron (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>), increased by 2.7% in the past five days, while the options volume reflected a bias toward bullish call action.
SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) and iShares U.S. Oil &amp; Gas Exploration &amp; Production ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEO#BATS">IEO</a>), which provide more targeted exposure to U.S. shale and drilling firms, also surged during the price spike, gaining 5% and 3%, respectively over the past five days.
For more adventurous speculators, leveraged funds such as the ProShares Ultra Bloomberg Crude Oil ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) are also getting renewed traction, particularly as WTI pushes for the $80 barrier, a psychological support level for breakout enthusiasts. The fund witnessed price gains of almost 17% in the past five days.
Also Read: <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/06/45983526/trump-wants-an-end-not-a-ceasefire-for-the-israel-iran-war-what-that-means-for-etfs">Trump Wants &#8216;An End, Not a Ceasefire&#8217; For The Israel-Iran War: What That Means For ETFs</a>
<h2 class="wp-block-heading">Hormuz In The Crosshairs</h2>
The most frightening wild card in the mix might be the Strait of Hormuz, that tight shipping lane <a href="https://www.eia.gov/todayinenergy/detail.php?id=65504">seeing </a>close to 20% of total global flows of oil, according to U.S. Energy Information Administration.
At the Japan Energy Summit &amp; Exhibition in Tokyo, Shell chief executive Wael Sawan predicted a &#8220;huge impact&#8221; on world trade should the waterway be closed, as cited by Bloomberg. Meanwhile the American Petroleum Institute reiterated to Bloomberg that even an appearance of threat to tankers had the power to create market mayhem. US involvement could cause Iran to attack infrastructure or shipping routes in retaliation, according to RBC Capital&#8217;s Helima Croft, cited by Reuters.
If such disruption occurs, ETFs related to oil logistics, shipping, and midstream infrastructure may experience knock-on effects, either favorable, as risk premiums increase, or unfavorable, if operations are suspended.
<h2 class="wp-block-heading">Trump&#8217;s Wild Card Effect: Trader Paralysis Or Opportunity?</h2>
Uncertainty about the president&#8217;s next step has added further volatility to markets. Trump&#8217;s unorthodox style of foreign policy in his first term has put investors off from making bets either on rapid escalation or rapid de-escalation.
&#8220;Even if Middle East tensions were to cool off in the coming days, oil prices are probably not headed back to the low-$60 range they were trading at a month ago,&#8221; said Price Futures Group senior analyst Phil Flynn as cited by Reuters, adding that the market had been underpricing geopolitical shocks, and now that premium is coming back.
This repricing has given new life to energy ETFs, which had trailed the wider equity indices over the past few months. Some strategists like Goldman Sachs think Brent may rise above $90 if the conflict worsens, something that would make energy ETFs one of the brighter spots in a risk-off environment.
For risk-management traders, tactical ETF plays can potentially present opportunities, but for long-term allocators, perhaps there is a larger message here: geopolitical hedging through energy exposure.
Read Next: 
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Image: Shutterstock/Barks

Commodities

Israel-Iran Conflict Lifts Crude Above $77: What It Means For Oil ETFs

Israel&#8217;s attacks on Iran&#8217;s energy infrastructure is causing a run-up in global energy prices, with futures markets, and ETFs, all seeing substantial inflows.
What Happened: Attacks on Iran&#8217;s Shahran oil depot in Tehran, alongside a natural gas field and multiple oil refineries by Israeli forces over the weekend, are sending global energy prices soaring, with Brent crude oil futures trading at $73.54 a barrel, up 9.1% over the past week.
The attacks that are part of Israel&#8217;s ongoing campaign against Iran have been focused on the nation&#8217;s energy infrastructure, and not just its military assets. This is aimed at sowing further discontent among the Iranian populace, who are already dealing with blackouts and power cuts due to mismanagement, according to a <a href="https://www.telegraph.co.uk/world-news/2025/06/15/israel-is-attacking-iran-where-the-regime-fears-most/">report</a> by The Telegraph, a U.K.. daily.
See Also: <a href="https://www.benzinga.com/news/politics/25/06/45965629/trump-exits-g7-summit-early-citing-obvious-reasons-amid-escalating-iran-israel-conflict-gold-oil-etfs-spike-in-after-hours-trading">Trump Exits G7 Summit Early Citing &#8216;Obvious Reasons&#8217; Amid Escalating Iran-Israel Conflict: Gold, Oil ETFs Spike In After-Hours Trading</a>
Brent crude for August delivery surged more than 7% Friday to settle above $78 a barrel, its largest one-day gain in nearly six months. WTI futures also jumped 6.69% over the past week, before paring gains on Monday as ceasefire rumors circulated.
Energy ETFs such as the ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>), the United States Oil Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), and the SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) all saw outsized gains over the past week, at 13.61%, 8.90%, and 5.59%, respectively.
<figure class="wp-block-table"> 
<table class="has-fixed-layout">
<thead>
<tr>
<th>ETF</th>
<th class="has-text-align-center" data-align="center">1-Week Performance</th>
<th class="has-text-align-center" data-align="center">YTD Performance</th>
</tr>
</thead>
<tbody>
<tr>
<td>ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>)</td>
<td class="has-text-align-center" data-align="center">+13.61%</td>
<td class="has-text-align-center" data-align="center">-8.61%</td>
</tr>
<tr>
<td>United States Oil Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>)</td>
<td class="has-text-align-center" data-align="center">+8.90%</td>
<td class="has-text-align-center" data-align="center">+2.16%</td>
</tr>
<tr>
<td>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>)</td>
<td class="has-text-align-center" data-align="center">+5.59%</td>
<td class="has-text-align-center" data-align="center">-1.28%</td>
</tr>
<tr>
<td>Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>)</td>
<td class="has-text-align-center" data-align="center">+3.88%</td>
<td class="has-text-align-center" data-align="center">+1.36%</td>
</tr>
</tbody>
</table>
</figure>
Why It Matters: On Monday, President Donald Trump asked all U.S. citizens to &#8220;immediately&#8221; <a href="https://www.benzinga.com/news/events/25/06/45964856/trump-asks-everyone-to-immediately-evacuate-tehran-odds-of-us-striking-iran-spike-on-crypto-betting-platform">evacuate the city</a> of Tehran, highlighting the seriousness of the crisis, while increasing the likelihood of the United States joining Israel in its war against Iran.
The crisis has since led to a <a href="https://www.benzinga.com/analyst-stock-ratings/analyst-color/25/06/45948662/iran-israel-tensions-fuel-oil-rally-investors-are-piling-into-energy-etfs">rally in energy ETFs</a>, with the likes of the Energy Select Sector SPDR Fund seeing their biggest inflows since October 2024, at $470 million. 
Analysts at ING and JPMorgan have warned that a <a href="https://www.benzinga.com/markets/commodities/25/06/45924154/the-120-oil-shock-just-became-a-real-risk-are-we-back-in-2022">protracted supply hit</a> could send prices to upwards of $120 a barrel, adding that &#8220;Iran is a meaningful oil producer, pumping 3.3 million barrels per day and exporting around 1.7 million.&#8221;
<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="1024" height="190" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/17000014/Screenshot-2025-06-17-at-9.29.59-AM-1024x190.png" alt="" class="wp-image-951559" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/17000014/Screenshot-2025-06-17-at-9.29.59-AM-1024x190.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/17000014/Screenshot-2025-06-17-at-9.29.59-AM-300x56.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/17000014/Screenshot-2025-06-17-at-9.29.59-AM-768x143.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/17000014/Screenshot-2025-06-17-at-9.29.59-AM.png 1174w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
According to Benzinga&#8217;s Edge Stock Rankings, the United States Oil Fund has a strong momentum, along with a favorable price trend in the short, medium, and long term. Click <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">here</a> for deeper insights.
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</ul>

Markets

Israel Is Pounding Iran's Energy Infrastructure And It's Sending These Oil ETFs Soaring, But It Maybe Bad News At The Gas Pump

President Donald Trump cut short his Group of Seven summit attendance in Canada&#8217;s Kananaskis, citing escalating Iran-Israel hostilities that demanded immediate attention in Washington. 
What Happened: &#8220;I have to be back early for obvious reasons,&#8221; Trump said on Monday before departing after dinner.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">.<a href="https://twitter.com/POTUS?ref_src=twsrc%5Etfw">@POTUS</a> on his early departure from the G7 Summit: &quot;I have to be back early — for obvious reasons.&quot; <a href="https://t.co/vtM4wwy1r9">pic.twitter.com/vtM4wwy1r9</a>
&mdash; Rapid Response 47 (@RapidResponse47) <a href="https://twitter.com/RapidResponse47/status/1934773306324042177?ref_src=twsrc%5Etfw">June 17, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
The president&#8217;s early exit coincided with significant market volatility as safe-haven assets surged. Gold futures climbed to approximately $3,390 per ounce Monday, gaining 0.09% amid Middle East tensions.
WTI crude oil futures rose to around $72.8 per barrel as Israel vowed continued strikes against Iran, raising concerns about potential energy supply disruptions.
See Also: 
Why It Matters: Gold ETFs demonstrated strong after-hours performance. SPDR Gold Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) gained 0.55% to $313.48 after closing down 1.43%. iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>) added 0.36% after hours, while SPDR Gold MiniShares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLDM#NYSE">GLDM</a>) rose 0.51%.
Oil-related ETFs showed even stronger momentum. United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) surged 2.66% after hours to $80.68 following a 2.03% regular session decline. ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) jumped 3.30% after hours, recovering from earlier losses.
The president previously posted on Truth Social, <a href="https://www.benzinga.com/crypto/25/06/45965340/bitcoin-ethereum-dogecoin-lose-early-gains-after-trumps-immediately-evacuate-warning-amid-iran-israel-conflict-analyst-sees-great-signal-for-risk-on-app">urging Tehran&#8217;s resident</a>s to &#8220;immediately evacuate&#8221; without elaboration.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock

GLDM

Trump Exits G7 Summit Early Citing 'Obvious Reasons' Amid Escalating Iran-Israel Conflict: Gold, Oil ETFs Spike In After-Hours Trading

As global tensions in the Middle East highlight a volatility in the oil markets, an expert suggests the U.S. economy&#8217;s susceptibility to oil price shocks has significantly diminished compared to previous decades.
What Happened: According to Bob Elliott, the CIO of Unlimited Funds, the shift in the mechanical impact of rising oil prices is primarily due to the United States&#8217; transition into a net exporter of crude products.
Traditionally, oil price surges acted as a significant drag on household spending and often prompted central banks to adopt tighter monetary policies to combat inflation. However, Elliott&#8217;s detailed examination reveals a changed landscape.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The US economy is far less sensitive to an oil shock than in previous decades. While the ongoing Mideast conflict is a concern, it would take multiples of the the impact priced in so far to have meaningful economic impact. Thread.
&mdash; Bob Elliott (@BobEUnlimited) <a href="https://twitter.com/BobEUnlimited/status/1934558230123782446?ref_src=twsrc%5Etfw">June 16, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
While consumer gasoline prices might still see a moderate uptick following price increases, the overall impact on household consumption is far less profound. Spending on fuel has fallen to a mere 1.3% of total household consumption, making recent price movements &#8220;not noticeable&#8221; in the broader economic context, Eliott explains.
&#8220;The surge in US production to the point where the US is a net exporter highlights how an oil shock may not be nearly as detrimental as in past rounds. While it would create a drag on HH consumption and rising inflation, it will also support domestic production &amp; investment,&#8221; he said in an X thread.
Furthermore, the surge in domestic oil production means that higher prices now generate increased income for U.S. oil producers, offsetting some of the drag felt elsewhere. This domestic boost in income and the incentive for greater production efforts highlight a crucial difference in the economic equation.
Here&#8217;s a list of a few U.S. oil producers and oil ETFs.
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>Listed Oil Companies</td>
<td>Friday&#8217;s Performance</td>
<td>YTD Performance</td>
<td>One-Year Performance</td>
</tr>
<tr>
<td>Exxon Mobil Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>)</td>
<td>2.18%</td>
<td>4.48%</td>
<td>3.47%</td>
</tr>
<tr>
<td>Chevron Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>)</td>
<td>0.65%</td>
<td>-0.55%</td>
<td>-4.75%</td>
</tr>
<tr>
<td>Occidental Petroleum Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>)</td>
<td>3.78%</td>
<td>-6.75%</td>
<td>-22.84%</td>
</tr>
<tr>
<td>EOG Resources Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EOG#NYSE">EOG</a>)</td>
<td>3.89%</td>
<td>0.46%</td>
<td>5.21%</td>
</tr>
<tr>
<td>Marathon Petroleum Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MPC#NYSE">MPC</a>)</td>
<td>0.65%</td>
<td>17.43%</td>
<td>-3.25%</td>
</tr>
<tr>
<td>CVR Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVI#NYSE">CVI</a>)</td>
<td>4.95%</td>
<td>43.50%</td>
<td>-0.37%</td>
</tr>
<tr>
<td>Schlumberger NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>)</td>
<td>1.88%</td>
<td>-5.47%</td>
<td>-16.80%</td>
</tr>
</tbody>
</table>
</figure>
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>Listed Oil ETFs</td>
<td>Friday&#8217;s Performance</td>
<td>YTD Performance</td>
<td>One-Year Performance</td>
</tr>
<tr>
<td>United States Oil Fund LP (ARCA&#8221; USO)</td>
<td>6.89%</td>
<td>4.28%</td>
<td>4.28%</td>
</tr>
<tr>
<td>ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>)</td>
<td>8.65%</td>
<td>-7.44%</td>
<td>-19.06%</td>
</tr>
<tr>
<td>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>)</td>
<td>2.67%</td>
<td>-1.51%</td>
<td>-6.96%</td>
</tr>
</tbody>
</table>
</figure>
See Also: <a href="https://www.benzinga.com/markets/forex/25/06/45943600/is-us-dollar-losing-its-edge-de-dollarization-and-fading-exceptionalism-raise-alarms">Is US Dollar Losing Its Edge? De-Dollarization And Fading Exceptionalism Raise Alarms</a>
Why It Matters: Despite escalating conflict, Iran has notably reduced its missile barrages on Israel, with the Institute for the Study of War (ISW) attributing this to the effectiveness of Israeli airstrikes.
Early waves on Friday and Saturday saw Iran launching 100-200 missiles per wave. However, subsequent attacks have <a href="https://www.benzinga.com/markets/equities/25/06/45944854/irans-missile-stockpile-may-be-shrinking-as-strikes-on-israel-taper-off-says-think-tank-lmt-rtx-gd-in-focus">dropped to 35-40 missiles each</a>, indicating a significant impact on Iran&#8217;s launch capacity. 
Initial estimates placed Iran&#8217;s missile stockpile at around 2,000, with an alleged plan to fire 1,000 ballistic missiles. Yet, Israeli strikes reportedly damaged or destroyed numerous launchers and silos, limiting Iran to just 200 launches. This suggests Iran may soon face difficulties sustaining its current missile attack rate.
Price Action: As of the publication of this article, Crude Oil WTI Futures were 1.32% lower at $70.47, and Brent Oil was down 1.24% to $73.31.
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, rose in premarket on Monday. The SPY was up 0.50% at $599.99, while the QQQ advanced 0.56% to $529.93, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
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Exxon Mobil, Chevron, Occidental Petroleum In Focus As Expert Says 'US Economy Is Far Less Sensitive To An Oil Shock' Amid Israel-Iran Conflict

Crude oil prices and the ETFs that track the commodity are surging higher amid escalating tensions in the Middle East, sending prices to a two-month high.
What Happened: On Wednesday, crude oil prices soared over 4% amid heightened tensions between the United States and Iran, prompting Washington to evacuate non-emergency personnel from its bases and embassies located across the Middle East region. 
President Donald Trump announced that U.S. personnel stationed in the Middle East were being moved out, because &#8220;it could be a dangerous place.&#8221;
Trump further expressed his doubts regarding whether the U.S. and Iran could reach a nuclear deal, saying that &#8220;they can&#8217;t have a nuclear weapon, very simple.&#8221; 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">.<a href="https://twitter.com/POTUS?ref_src=twsrc%5Etfw">@POTUS</a> on Iran: &quot;They can&#39;t have a nuclear weapon. Very simple. They can&#39;t have a nuclear weapon. We&#39;re not going to allow that.&quot; <a href="https://t.co/iCpyyYJeBh">pic.twitter.com/iCpyyYJeBh</a>
&mdash; Rapid Response 47 (@RapidResponse47) <a href="https://twitter.com/RapidResponse47/status/1932939773984878952?ref_src=twsrc%5Etfw">June 11, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
See Also: <a href="https://www.benzinga.com/markets/tech/25/06/45896715/meta-tiktok-challenge-eus-digital-services-act-fees-call-them-absurd-discriminatory-and-based-on-flawed-calculations">Meta, TikTok Challenge EU&#8217;s Digital Services Act Fees, Call Them &#8216;Absurd,&#8217; &#8216;Discriminatory&#8217; And Based On Flawed Calculations</a>
Brent crude futures reacted swiftly to the news, rallying 4.81% during the day and ending at $69.81 per barrel. The commodity crossed $70 on Thursday, but has since witnessed a pullback, currently trading at $69.46 per barrel, down 0.46% at the time of writing this.
Why It Matters: News of the evacuation <a href="https://www.benzinga.com/news/topics/25/06/45893521/us-embassy-evacuations-spark-middle-east-risks-and-markets-are-noticing">took a toll</a> on the markets, with the Dow Jones Industrial Average&nbsp;dropping nearly 300 points from its earlier peak of 43,115, dipping to 42,860 late in the session.
The rise in crude oil prices lifted ETFs that track the commodity, such as the United States Oil Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), which soared 4.50% on Wednesday, followed by the ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) and the SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>), up 6.56% and 1.90%, respectively.
<figure class="wp-block-table"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td class="has-text-align-center" data-align="center">Funds &amp; ETFs</td>
<td class="has-text-align-center" data-align="center">1-Day Returns</td>
<td class="has-text-align-center" data-align="center">Year-To-Date Returns</td>
</tr>
<tr>
<td class="has-text-align-center" data-align="center">United States Oil Fund LP </td>
<td class="has-text-align-center" data-align="center">+4.50%</td>
<td class="has-text-align-center" data-align="center">-2.74%</td>
</tr>
<tr>
<td class="has-text-align-center" data-align="center">ProShares Ultra Bloomberg Crude Oil </td>
<td class="has-text-align-center" data-align="center">+6.56%</td>
<td class="has-text-align-center" data-align="center">-15.41%</td>
</tr>
<tr>
<td class="has-text-align-center" data-align="center">SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF </td>
<td class="has-text-align-center" data-align="center">+1.90%</td>
<td class="has-text-align-center" data-align="center">-4.69%</td>
</tr>
</tbody>
</table>
</figure>
Crude oil prices are nonetheless expected to <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45135059/oil-sinks-below-57-on-opec-supply-speculation-bear-market-deepens">remain under pressure</a>, with the Organization of the Petroleum Exporting Countries or OPEC+ unwinding supply despite falling prices.
According to Benzinga&#8217;s Edge Rankings, the ProShares Ultra Bloomberg Crude Oil fund fares poorly on Momentum, ranked in the 21st percentile, with a weak price trend in the medium and long term. Click <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">here for deeper insights into the fund</a>, its peers, and competitors.
<figure class="wp-block-image size-large is-resized"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="1024" height="192" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/11235654/Screenshot-2025-06-12-at-9.26.39-AM-1024x192.png" alt="" class="wp-image-946953" style="width:920px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/11235654/Screenshot-2025-06-12-at-9.26.39-AM-1024x192.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/11235654/Screenshot-2025-06-12-at-9.26.39-AM-300x56.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/11235654/Screenshot-2025-06-12-at-9.26.39-AM-768x144.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/11235654/Screenshot-2025-06-12-at-9.26.39-AM.png 1176w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
Read More:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/crypto/25/06/45896615/us-recession-odds-tumble-to-23-on-crypto-betting-market-after-trump-confirms-china-trade-deal-softer-inflation-numbers">US Recession Odds Tumble To 23% On Crypto Betting Market After Trump Confirms China Trade Deal, Softer Inflation Numbers</a></li>
</ul>
Image via Shutterstock

ETFs

Oil ETFs Surge Over 6% As Trump Orders Middle East Evacuation Amid Iran Tensions, Warns Region 'Could Be Dangerous'

As crude prices edge higher, several <a href="https://www.benzinga.com/etfs">oil-focused ETFs </a>are showing signs of life, offering investors a tactical opportunity amid supply tightness and improving sentiment.
Oil may have spent most of this year trapped in a range, but that hasn't stopped a few well-positioned ETFs from warming up. A recent 4% climb in Brent prices, optimism around renewed US-China trade negotiations, and signs of tightening short-term supply are giving the energy trade fresh fuel <a href="https://www.bloomberg.com/news/articles/2025-06-08/latest-oil-market-news-and-analysis-for-june-9?sref=TBDibEcD">according </a>to Bloomberg, just in time for summer.
Also Read: <a href="https://www.benzinga.com/personal-finance/management/25/06/45842911/exclusive-why-eric-lutton-says-sitting-in-cash-could-cost-you-big">EXCLUSIVE: Why Eric Lutton Says Sitting In Cash Could Cost You Big</a>
For investors looking to play this setup, here's a look at some top oil-linked ETFs gaining traction:
United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>): 
What it does: Tracks front-month WTI crude oil futures Why it matters now: USO is a barometer for short-term crude price moves. With backwardation (near-term futures priced higher than later months) back in play, the fund faces less drag from roll costs. If crude stays firm or trends upward, USO could reflect gains more efficiently than it did during contango-heavy periods.
Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>)
What it does: Tracks large-cap U.S. energy stocks like ExxonMobil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) and Chevron (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) Why it matters now: While XLE isn't a direct oil proxy, it&#8217;s sensitive to crude price trends via energy sector profitability. It also serves as a relatively stable option for those seeking sector exposure without the futures complexity of USO.
ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>)
What it does: Provides 2x leveraged exposure to daily WTI crude moves Why it matters now: For tactical traders, UCO offers a leveraged way to bet on oil upside during short-term rallies. With crude holding above $66 and volatility low, UCO could see amplified gains, though it's not for the risk-averse.
VanEck Oil Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>)
What it does: Tracks oilfield services companies like Halliburton and Schlumberger Why it matters now: Services firms benefit when producers ramp up drilling and production. If summer demand drives more activity and OPEC+ production hikes stick, OIH constituents could see revenue and margin boosts.
SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>)
What it does: Focuses on smaller exploration and production companies Why it matters now: These firms are highly sensitive to oil prices. In a bullish cycle, they often outperform due to greater operating leverage—but that also means steeper losses during downturns.
<h2 class="wp-block-heading">Why Oil Is Moving Now</h2>
Brent crude is holding above $64 after a strong 4% gain last week, lifted by renewed optimism around U.S.-China trade talks, with negotiators meeting in London to dial down geopolitical friction that has weighed on global growth.
But crude's rally isn't just about diplomacy. Supply signals are tightening, too. U.S. futures are in backwardation, a bullish curve structure that points to stronger near-term demand. Meanwhile, volatility gauges are near their lowest since April (VIX is around 17), suggesting markets are stabilizing.
Still, <a href="https://www.bloomberg.com/news/articles/2025-06-08/latest-oil-market-news-and-analysis-for-june-9">crude </a>is down 15% year-to-date, and the rally remains fragile. OPEC+'s surprise production bump could cap gains, and macro risks, from softening Chinese demand to election-season volatility in the U.S., still lurk.
<h2 class="wp-block-heading">Final Takeaway</h2>
ETF investors need to weigh short-term tailwinds like trade optimism, summer driving season, tight supply, against longer-term risks. With spot signals flashing green, now may be a time to nibble at energy exposure. But keep your stop-losses tight and your macro radar on.
Read Next: 
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/commodities/25/06/45842761/silver-just-shattered-a-14-year-ceiling-could-50-be-next">Silver Just Shattered A 14-Year Ceiling &#8211; Could $50 Be Next?</a></li>
</ul>
Photo: Shutterstock

Specialty ETFs

These 5 Oil ETFs Can Ride The Summer Demand Wave Amid Trade Talk Tailwinds

In the wake of <a href="https://www.benzinga.com/topic/opec">OPEC+&#8217;s weekend decision</a> to increase oil production quotas, <a href="https://www.benzinga.com/etfs">energy ETFs are back</a> in the spotlight—some surfing the wave of positive sentiment, others protecting against geopolitical uncertainty. As oil prices surged on the U.S.-UK trade relations and potential resolutions to the U.S.-China tariff war, ETFs tracking oil futures and energy stocks have experienced rising volume and volatility.
Also Read: <a href="https://www.benzinga.com/25/04/44799117/us-iran-talks-fuel-oil-rally-here-are-5-energy-etfs-in-the-radar">US-Iran Talks Fuel Oil Rally: Here Are 3 Energy ETFs In The Radar</a>
<ol>
<li>United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) The USO is perhaps the most direct play on crude oil prices. It tracks daily price movements of WTI futures. In the past week, USO has climbed in tandem with WTI's 3%+ rally, and daily trading volumes have surged. But with its exposure to short-term futures, the fund is vulnerable to contango risk, a drag on costs that can cut into returns when longer-dated futures are trading at a premium to near-term contracts. Investors are keen to observe whether the OPEC+ production increase smoothes the front of the curve, lowering the drag. </li>
<li>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) The XOP ETF provides exposure to a basket of upstream energy companies—those that drill, explore, and produce. With CNX Resources (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNX#NYSE">CNX</a>) and Exxon Mobil Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) among its holdings, XOP is prone to magnifying the effect of oil price volatility. The ETF advanced more than 3% following the trade deal and production news. That&#8217;s a sign of investor optimism. Exploration companies could gain from stabilized demand and more transparent global trade flows. </li>
<li>ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) For the adventurous, UCO offers 2x leveraged exposure to WTI futures&#8217; daily performance. It&#8217;s become popular with short-term speculators attempting to catch news events, such as the OPEC+ output boost or US-Iran nuclear talks. While potentially profitable in robust upswings, UCO can be brutal in reversals, and thus a weapon best reserved for experienced traders. The fund advanced more than 5% on Thursday following the US-UK trade deal.</li>
</ol>
<h2 class="wp-block-heading">What&#8217;s Going On Today On The Oil Front?</h2>
As the market prices in the possibility of looser supply conditions from OPEC+ and stronger global trade relationships, oil ETFs sit in the middle of this macroeconomic tug-of-war.
OPEC+ said at the weekend it will raise its oil production quotas, speeding the rollback of previous supply cuts as part of its continuing strategy to balance market recovery with geopolitical necessities. The step, which occurs after April production slipped by a small margin due to stoppages in Venezuela, Iraq, and Libya, as discovered by a Reuters Survey, is a measure of the group&#8217;s faith in the resilience of demand as the trade environment looks up. 
In the meantime, wider macroeconomic mood has been given a significant boost by renewed momentum in global trade diplomacy. The<a href="https://www.benzinga.com/25/05/45293839/trump-starmer-strike-us-uk-trade-deal-steel-cars-beef"> just-announced U.S.-UK trade deal</a>, touted by President Trump as a &#8220;breakthrough,&#8221; is set to cut tariffs on major goods—including a major cut on UK car exports and complete removal of duties on steel and aluminum. UK Prime Minister Keir Starmer described the agreement as a &#8220;catalyst for deeper bilateral trade,&#8221; while U.S. Commerce Secretary Howard Lutnick put new opportunities for American exporters at $5 billion. The good news precedes a high-stakes meeting between <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45290148/oil-bulls-eye-rebound-as-us-china-talks-spark-hope-yardeni">U.S. Treasury Secretary Scott Bessent and China&#8217;s highest-ranking economic official</a> on May 10 in Switzerland to work out long-standing trade tensions. Collectively, these negotiations are sparking hope that a de-escalation of tariff wars can rekindle world demand, specifically for energy-intensive industries, offering a backstop of support for oil prices and commodity-linked ETFs.
While Citi Research trimmed Brent forecasts to $55 for the next three months, the firm maintained that price levels will stabilize later this year at around $60 per barrel, according to another Reuters report. That is good news for energy-themed ETFs, particularly those with less exposure to futures roll costs and more diversification throughout the oil value chain.
Read Next: 
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<li><a href="https://www.benzinga.com/etfs/specialty-etfs/25/05/45297474/imtm-etf-tanks-then-soars-why-global-momentum-is-making-a-comeback">IMTM ETF Tanks, Then Soars: Why Global Momentum Is Making A Comeback</a></li>
</ul>

Sector ETFs

Oil ETFs Heat Up As OPEC+ Pump-Up, US-UK Trade Deal, China Talks Fuel Rally

The Trump administration is exploring a strategy to halt and examine Iranian oil tankers at sea as part of an international agreement aimed at curbing the spread of <a href="https://www.benzinga.com/25/02/43480859/trump-confirms-maximum-economic-pressure-on-iran-calls-chinas-tariff-retaliation-fine">weapons of mass destruction</a>.
What Happened: According to Reuters, Trump officials are considering enabling allied nations to stop and inspect vessels passing through critical maritime routes such as Asia's Malacca Strait.
Such actions could delay crude deliveries to refiners and potentially damage the reputations of those involved in facilitating these trades.
The administration is evaluating whether these sea inspections could be conducted under the Proliferation Security Initiative (PSI), a U.S.-led program launched in 2003 with the participation of over 100 countries to prevent the movement of weapons of mass destruction. 
See Also: <a href="https://www.benzinga.com/markets/equities/25/03/44157043/jim-cramer-doubles-down-on-crowdstrike-despite-drop-analysts-who-were-so-negativehad-it-wrong">Jim Cramer Doubles Down On CrowdStrike Despite Drop: &#8216;Analysts Who Were So Negative…Had It Wrong&#8217;</a>
Why It Matters: Opponents of Tehran's oil revenue say it supports nuclear proliferation as well as terrorism.
However, past attempts to seize Iranian oil have sparked retaliation from Tehran. In 2023, Iran seized foreign ships—one chartered by Chevron (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>)—after the U.S. attempted to intercept Iranian oil cargoes.
&#8220;You don't have to sink ships or arrest people to have that chilling effect that this is just not worth the risk,&#8221; said one source, emphasizing that delivery delays could sow uncertainty in illicit trade networks. 
Analysts warn that the longer sanctions remain in place, the more Iran and its oil buyers will find ways to circumvent them.
With Iran's oil revenues largely tied to exports to China, any prolonged disruption could have significant economic impacts. 
<h2 class="wp-block-heading">ETFs To Watch</h2>
During pre-market hours on Thursday, <a href="https://pro.benzinga.com">Benzinga Pro</a> showed: 
<ul>
<li>ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) fell by 0.17%,</li>
<li>United States Oil Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) dropped 2.58%,</li>
<li>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) decreased by 0.39%, and</li>
<li>MicroSectorsTM Oil &amp; Gas Exploration &amp; Production 3X Leveraged ETNs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILU#NYSE">OILU</a>) saw a 0.28% drop,</li>
</ul>
Now Read:
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<li><a href="https://www.benzinga.com/markets/forex/25/03/44161314/us-stocks-likely-to-open-lower-after-wednesdays-blip-be-patient-but-be-ready-to-act-says-analyst-as-market-uncertainties-can-create-opportunities">US Stocks Likely To Open Lower After Wednesday&#8217;s Blip: &#8216;Be Patient, But Be Ready To Act,&#8217; Says Analyst As Market Uncertainties Can Create &#8216;Opportunities&#8217;</a></li>
</ul>
Image: Shutterstock

Government

Global

OILU

Trump Administration Weighs Sea Inspections Of Iranian Oil Tankers

President Donald Trump, while hosting a White House meeting with Jordan&#8217;s King Abdullah at the White House Tuesday, reiterated his threat that the U.S. will take control of the Gaza Strip and move the nearly two million Palestinians living there to either Jordan <a href="https://www.benzinga.com/topic/gaza">or Egypt or somewhere</a>.
Asked whether the U.S. would cut billions in financial aid to the two countries if they refused to accept the transfer of Palestinians, Trump sounded confident that Jordan and Egypt would carry out his wishes.
"I don't have to threaten that. I do believe we're above that," Trump said, contradicting his previous suggestion that holding back aid was a possibility.
<h2 class="wp-block-heading">How Will The US Attain Gaza?</h2>
Trump said the US could come to control Gaza without committing any money. 
&#8220;We are not going to buy Gaza&#8230;we are going to take it and cherish it,&#8221; Trump said. &#8221; It will bring peace to the Middle East. It is going to be a tremendous thing and put a lot of people to work.&#8221; 
Speaking in broad strokes, Trump insisted that there has been overwhelming support for his plan to turn Gaza into a resort, though in fact most world leaders <a href="https://www.benzinga.com/news/25/02/43503385/trumps-gaza-plan-for-seaside-resort-faces-global-pushback">criticized his plan</a> when it was first announced.
Trump suggested that the redeveloped area could have new hotels, office buildings and houses and "and we'll make it exciting." 
Trump then waxed on about what a successful real estate magnate he is. "I can tell you about real estate. They're going to be in love with it," he said.
<h2 class="wp-block-heading">King Abdullah, What Say You? </h2>
When pressed by reporters specifically as to whether he agreed to the transfer of Palestinians from Gaza, King Adbullah said that more talks will be held soon with Egypt to discuss the issue. Egypt has also condemned Trump&#8217;s plan. 
The King said that Jordan would need to take into consideration how it could or would be able to take Palestinians into his country. The kingdom already shelters 700,000 Syrian refugees and lacks the oil wealth of its neighbors, making continued U.S. aid crucial. Jordan receives nearly $2 billion in foreign aid to Jordan, which contributes at least 42% to the country&#8217;s total economy
&#8220;This is something that we as Arabs will discuss later and talk about the options,&#8221; King Abdullah said. 
Two Palestinians from Michigan told Benzinga that they thought the King played his cards close to his chest and that deferring to upcoming talks with Egypt &#8220;was a good idea. He [Trump] already walked back the threat of cutting aid to both Egypt and Jordan.&#8221;
Analysts from various outlets agreed that King Abdullah held back in the short press briefing during which Trump did most of the talking. Though ahead of Tuesday's meeting, King Abdullah had reaffirmed his commitment to a two-state solution and the need for a "just and comprehensive peace" in the region. 
In terms of Israel&#8217;s plan to annex the mostly Palestinian West Bank, Trump said, &#8220;That&#8217;s going to work out.&#8221;
Abdullah also announced that Jordan was intending to bring to Jordan 2,000 Palestinian children from Gaza in need of cancer treatment, which Trump said was a beautiful thing.
<h3 class="wp-block-heading">ETFs To Watch</h3>
According to <a href="https://pro.benzinga.com">Benzinga Pro</a>, oil ETFs were in the green at last check Tuesday:
<ul>
<li>ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) is up by 2.65%</li>
<li>United States Oil Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) is up by 1.25%</li>
<li>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) is up by 0.9%</li>
<li>MicroSectorsTM Oil &amp; Gas Exploration &amp; Production 3X Leveraged ETNs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILU#NYSE">OILU</a>) saw a 2.94% uptick</li>
</ul>
Now Read:
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<li><a href="https://www.benzinga.com/markets/25/02/43621302/justin-trudeau-slams-unacceptable-us-tariffs-after-trump-imposes-25-levy-on-metal-imports-canadians-will-stand-up-strongly-and-firmly-if-we-need-to">Justin Trudeau Slams &#8216;Unacceptable&#8217; US Tariffs After Trump Imposes 25% Levy On Metal Imports : &#8216;Canadians Will Stand Up Strongly And Firmly If We Need To&#8217;</a></li>
</ul>
Palestinian refugees in Gaza: Shutterstock

Trump Says We Will 'Take Gaza' And 'Cherish It' In White House Meeting With Jordan's King Abdullah

The <a target="_blank" href="https://www.benzinga.com/topic/energy-sector" rel="noreferrer noopener">U.S. energy sector</a> posted a strong 2025 opening, outperforming other sectors as crude prices soared and the Market anticipated a deregulatory shift under Donald Trump&#8217;s&nbsp;government.
<a target="_blank" href="https://www.benzinga.com/topic/oil" rel="noreferrer noopener">Major oil companies</a> Exxon Mobil Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>),&nbsp;Chevron Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>), and&nbsp;Shell Plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHEL#NYSE">SHEL</a>), once the asset-light hypergrowth Big Tech antithesis are now targeting Big Tech to drive value.
Chevron, GE Vernova (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>) and Engine No. 1 launched a joint venture to power <a href="https://www.benzinga.com/25/01/43308041/chevron-ge-vernova-engine-no-1-bet-big-on-ai-power-but-is-it-too-late" target="_blank" rel="noreferrer noopener">artificial intelligence data centers</a> by 2027. Exxon will focus on providing low-carbon power through its carbon capture business.
Also Read: <a target="_blank" href="https://www.benzinga.com/media/25/01/43352019/amazon-cuts-more-jobs-in-cost-saving-push-report" rel="noreferrer noopener">Amazon Cuts More Jobs in Cost-Saving Push: Report</a>
Shell wants to use its solar energy and battery storage arm and its natural gas plant in Rhode Island.
The Big Oil trio&#8217;s&nbsp;fourth-quarter earnings grappled with fossil fuel supply outstripping demand, which took a toll on their margins, prompting them to depend on Big Tech energy supply as the latter splurge on their aggressive artificial intelligence data center ambitions, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-02-01/exxon-xom-chevron-cvx-brave-deepseek-risk-to-chase-ai-as-oil-glow-fades?sref=TBDibEcD" rel="noreferrer noopener">reports</a>.
However, China&#8217;s DeepSeek&#8217;s <a target="_blank" href="https://www.benzinga.com/25/01/43390988/deepseek-and-nvidia-under-us-investigation-ai-market-shakeup-wipes-out-1-trillion-in-tech-value" rel="noreferrer noopener">cheaper and low-power</a> AI model&#8217;s emergence rivaling Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) backed OpenAI, and&nbsp;other Big Tech giants posed a letdown for the oil companies by potentially cutting the need for data centers. The oil companies are betting on the growing demand for natural gas-generated electricity.
Big Oil resorted to buybacks and dividends to lure investors as the prospect of peak oil demand looms. However, the shareholder return strategy reached its limit.
Exxon paid out its entire <a target="_blank" href="https://www.benzinga.com/news/earnings/25/01/43389620/exxon-mobil-q4-earnings-mixed-results-but-ceo-promises-profitable-growth-well-into-the-future" rel="noreferrer noopener">free cash flow</a> of $36.0 billion in 2024 dividends and buybacks, yet still trades at a 46% discount to the S&amp;P 500 Index average.
It plans to expand its annual $20 billion share repurchase program through 2026.&nbsp;Chevron returned&nbsp;<a target="_blank" href="https://www.benzinga.com/25/01/43382627/chevron-falls-as-q4-profits-decline-amid-lower-oil-output-dividend-hike-offers-silver-lining" rel="noreferrer noopener">$27.0&nbsp;billion&nbsp;of</a> cash to shareholders in the year.
The U.S. is now the world&#8217;s biggest oil producer. Yet energy stocks make up just 3.2% of the S&amp;P 500. Part of Big Oil&#8217;s discounted valuation is due to its high capital spending that failed to yield returns.
Due to the energy transition, the Street remains jittery over the sustainability of dividends and buybacks. The volatility of commodity-price swings also dampened the valuation of fossil fuels compared to cash-rich Big Tech.
Goldman Sachs&#8217;&nbsp;Daan Struyven expects Donald Trump&#8217;s <a target="_blank" href="https://www.benzinga.com/general/market-summary/24/11/42212364/trumps-tariff-threat-to-canada-may-disrupt-oil-markets-inflate-prices-would-likely-raise-the-price-of-fuels-says-analyst" rel="noreferrer noopener">25% tariffs on</a> Canada to raise the price of fuels in the U.S. and drive inflation. Higher transport costs could also affect the profits of oil marketing companies.
Struyven recently said he expects <a target="_blank" href="https://www.benzinga.com/economics/macro-economic-events/25/01/43036184/us-energy-sector-enjoys-strong-start-to-2025-analysts-eye-constructive-setup-for-chevron" rel="noreferrer noopener">oil prices to</a> reach $90 per barrel if the U.S. further tightens Russia, Iran, and Venezuela&#8217;s oil supply.
Investors can gain exposure to crude oil through the United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) and ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>).
Price Actions: At last check on Monday, XOM stock was down 0.37% to $106.43. CVX is up 0.10%, and SHEL is down 1.06%.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/25/01/43351386/metas-ai-investments-llama-expansion-and-ad-tech-drive-growth-earn-analyst-conviction" target="_blank" rel="noreferrer noopener">Meta&#8217;s AI Investments, Llama Expansion, Ad Tech Growth Earn Analyst Conviction</a></li>
</ul>
Image via Shutterstock

Media

SHEL

Chevron, Exxon And Shell Shift Focus To Powering AI Growth

The International Energy Agency has revised its <a target="_blank" href="https://www.benzinga.com/topic/oil" rel="noreferrer noopener">global oil demand</a> outlook slightly for 2025, projecting growth of 1.05 million barrels per day, down from <a target="_blank" href="https://www.iea.org/reports/oil-market-report-december-2024" rel="noreferrer noopener">the previously estimated</a> 1.1 million barrels daily.
The new forecast anticipates global demand will average 104 million barrels daily, reflecting a combination of improving economic conditions and <a target="_blank" href="https://www.iea.org/reports/oil-market-report-january-2025" rel="noreferrer noopener">lower fuel prices</a>.
In the fourth quarter of 2024, oil demand rebounded strongly, increasing by 1.5 million barrels daily—the highest growth since late 2023.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/01/42980720/microsoft-taps-meta-veteran-to-lead-new-coreai-division-plans-shift-from-openai-dependence" rel="noreferrer noopener">Microsoft Launches CoreAI Division: Ex-Meta Exec To Supercharge Copilot And AI Innovations</a>
The IEA attributed this surge to reduced fuel prices, colder weather in northern regions, and heightened petrochemical activity in the U.S. However, while 2025 demand growth will likely surpass 2024, it will fall short of the over 2 million barrels per day increase seen in 2023.
OPEC projects a higher demand growth of <a target="_blank" href="https://momr.opec.org/pdf-download/" rel="noreferrer noopener">1.45 million barrels daily</a>.
<a target="_blank" href="https://www.benzinga.com/markets/commodities/24/11/41899890/opec-cuts-2024-oil-demand-forecast-for-fourth-straight-month-amid-chinas-economic-slowdown" rel="noreferrer noopener">Disappointing data from</a> major Asian markets, including China, India, and African countries, prompted OPEC to revise its oil demand growth forecasts for 2024 several times.
Still, OPEC&#8217;s estimates looked more optimistic than those of Wall Street banks and Saudi Aramco.
China saw a significant uptick in oil demand in November, driven by rising gasoil consumption and falling diesel prices, which hit their lowest in nearly three years.
The IEA highlighted that signs of stabilization in China&#8217;s property market could support further recovery in oil demand. Projections suggest China will add 220,000 barrels per day to its oil consumption in 2025, compared to a 180,000-barrel daily increase in 2024, the Wall Street Journal <a target="_blank" href="https://www.wsj.com/business/energy-oil/iea-trims-oil-demand-outlook-but-still-expects-stronger-growth-this-year-a972c71b?mod=business_lead_pos4" rel="noreferrer noopener">reports</a>.
Recent U.S. sanctions targeting Russia&#8217;s energy sector and shipping networks and measures aimed at Iran&#8217;s shadow fleet could disrupt global oil supplies. These actions may compel major buyers like China and India to seek alternative sources.
Meanwhile, Brent crude prices hover around $80 per barrel, and U.S. West Texas Intermediate trades near $77 per barrel, reflecting market concerns over tightened supply, the WSJ reports.
Despite geopolitical pressures, global oil supply rose modestly in December 2024, supported by increased production in Nigeria and Libya. For 2025, the IEA forecasts supply growth of 1.8 million barrels daily, led by non-OPEC+ countries such as the U.S., Brazil, and Canada. However, the agency cautioned that sanctions or weather-related disruptions could rapidly draw down existing oil stocks.
Notable oil stocks include Exxon Mobil Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>), Chevron Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>), Shell Plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHEL#NYSE">SHEL</a>), TotalEnergies SE (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TTE#NYSE">TTE</a>), Petroleo Brasileiro (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBR#NYSE">PBR</a>) and BP Plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BP#NYSE">BP</a>).
Investors can gain exposure to the crude oil market through the United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) and ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>).
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Photo by William Potter on Shutterstock

Guidance

Trading Ideas

OPEC's Optimism Clashes With IEA's Conservative 2025 Oil Growth Projections

At least one aspect of Israel&#8217;s multifront war is expected to come to an end if the militant group Hamas comes to ceasefire terms <a href="https://www.benzinga.com/news/global">with Israel</a>.
What Happened: So far, Hamas has yielded at least two of Israel's demands for a cease-fire agreement in Gaza, according to a Thursday <a href="https://www.wsj.com/world/middle-east/israel-gaza-palestine-ceasefire-hostage-negotiations-d599e1d1">Wall Street Journal</a> report. 
The development comes after previous negotiations collapsed. And, just three months ago, certain <a href="https://www.benzinga.com/news/24/09/40955425/top-us-officials-skeptical-of-israel-hamas-cease-fire-and-hostage-deal-before-bidens-term-ends-repor">senior U.S. officials were skeptical</a> that a hostage-release deal would occur before the end of President Joe Biden‘s term.
The scenario has changed drastically. 
U.S. National Security Adviser Jake Sullivan spoke to the press in Tel Aviv Thursday after meeting with Prime Minister Benjamin Netanyahu in Israel.
&#8220;Hamas started this war,&#8221; Sullivan said, optimistic that a ceasefire and hostage release &#8220;can happen.&#8221;
See below.
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Sullivan said he is set to visit Doha, Qatar and Cairo to close a deal &#8220;this month.&#8221; 
Hamas is reportedly willing to allow Israeli forces to stay in Gaza temporarily when the fighting stops, the WSJ reported. A list of hostages, including U.S. citizens, is expected to be released as part of a ceasefire pact.
Whether the ceasefire would last or be fully enforced remains to be seen.
Israel and Hezbollah were expected to <a href="https://www.benzinga.com/news/global/24/11/42199447/netanyahu-backs-cease-fire-deal-with-hezbollah-israeli-hardliner-calls-for-security-zone-inside-lebanon">pause fighting in Lebanon</a> last month, but <a href="https://www.benzinga.com/news/global/24/12/42279102/israel-hezbollah-trade-strikes-in-latest-sign-of-crumbling-ceasefire">attacks continued into December</a>. At least five people were killed in Israeli attacks on southern Lebanon in the last 24 hours, per <a href="https://www.aljazeera.com/news/2024/12/11/israeli-strikes-kill-five-in-southern-lebanon-amid-shaky-ceasefire">Al Jazeera</a>, citing the country's Health Ministry.
Hezbollah began firing rockets toward Israel after Hamas attacked <a href="https://www.benzinga.com/news/23/10/35136071/israel-under-siege-unprecedented-hamas-attack-sparks-intense-clashes-netanyahu-says-we-are-at-war">Israel on Oct. 7, 2023</a>.
Why It Matters: The ceasefire agreement would come as the balance of power in the Middle East changes.
This week, Israel seized the buffer zone as Bashar al-Assad&#8216;s rule in Syria collapsed. Al-Assad and his family were subsequently <a href="https://www.benzinga.com/24/12/42381587/bashar-al-assad-and-his-family-granted-asylum-by-russia-kremlin-source-says-always-spoken-in-favor-of-political-settlement">granted asylum by Russia</a>.
Assad&#8217;s regime was considered a lifeline to Hezbollah.
Traders can gain exposure to oil stocks that are affected by Middle East geopolitcal news via ETFs, or exchange-traded funds. According to <a href="https://pro.benzinga.com">Benzinga Pro</a>:
<ul>
<li>ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) is up 0.27% Thursday. </li>
<li>United States Oil Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) dropped 0.16%.</li>
<li>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) decreased by 0.79%.</li>
<li>MicroSectorsTM Oil &amp; Gas Exploration &amp; Production 3X Leveraged ETNs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILU#NYSE">OILU</a>) saw a 2.39% drop.</li>
</ul>
Israeli stocks, as monitored through the VanEck Israel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ISRA#NYSE">ISRA</a>), are up 25.34% year-to-date.
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</ul>
Image: Shutterstock

ISRA

Hamas Relents On Israeli Troops In Gaza, Paves Way For Potential Hostage Release

Oil markets in 2025 could face turbulence if President-elect Donald Trump reintroduces strict <a href="https://www.benzinga.com/topic/iran">policies toward Iran.</a>
According to JPMorgan analyst Arun Jayaram, while non-OPEC supply growth is expected to stabilize prices, the geopolitical wildcard of renewed sanctions on Iran could send shockwaves through the market.
Investors in the United States Oil Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), the ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) and the Invesco DB Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DBO#NYSE">DBO</a>) may want to closely monitor their holdings.
<h2 class="wp-block-heading">Trump's Maximum Pressure: A Familiar Script?</h2>
During Trump's first presidency, his "maximum pressure" campaign drastically curtailed Iranian oil exports, cutting them to just 400,000 barrels per day. In contrast, under the Joe Biden administration, Iran's oil exports rebounded dramatically, surging to 1.6 million barrels per day by 2024. 
Jayaram suggests that Trump's potential return to sanctions could disrupt up to 1 million barrels per day of Iranian crude—an outcome that could unsettle the fragile equilibrium.
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42340255/opec-extends-oil-output-cuts-to-late-2026-what-it-means-for-markets">OPEC+ Extends Oil Output Cuts To Late 2026: What It Means For Markets</a>
<h2 class="wp-block-heading">Can OPEC+ Play Along?</h2>
Jayaram's analysis highlights a significant challenge for Trump's sanctions strategy this time: OPEC+. Previously, the oil cartel adjusted production to mitigate the impact of lost Iranian barrels. 
However, with shifting alliances and evolving market dynamics, securing similar cooperation may prove far more difficult for Trump 2.0. Without OPEC+ backing, the effectiveness of sanctions in stabilizing prices could be severely limited.
<h2 class="wp-block-heading">What's Next For Oil Markets?</h2>
With non-OPEC supply projected to grow, the baseline for oil prices appears steady. Yet, the prospect of geopolitical brinkmanship introduces uncertainty. 
Jayaram emphasizes that the outcome hinges on Trump's ability to navigate international diplomacy and OPEC+ politics, both of which could determine whether oil markets face disruption or find balance.
The stage is set for a complex and unpredictable 2025, where Trump's Iran policies and shifting market dynamics could redefine the balance of power in oil markets. Investors should remain attentive to how these forces unfold.&#8221;
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Photo: Shutterstock

Analyst Color

Long Ideas

Regulations

Analyst Ratings

How Trump's Iran Policies Could Shape Oil Markets In 2025

Editor&#8217;s note: This story was updated to add missing detail in the introduction and further updated to reflect approval of a cease-fire deal by Israel&#8217;s cabinet and U.S. President Joe Biden&#8217;s Tuesday afternoon announcement. Stock price action in the story has been updated and exchange and ticker info for the ISRA ETF has been corrected as well. 
The governments of Israel and Lebanon have accepted a cease-fire deal, President Joe Biden said Tuesday. 
&#8220;Today I have some good news to report from the Middle East,&#8221; Biden said, adding that he spoke with the prime ministers of Israel and Lebanon. 
&#8220;I am pleased to announce that their governments have accepted the U.S. proposal to end the devastating conflict between Israel and Hezbollah,&#8221; said Biden, who made the remarks in the White House Rose Garden. 
The cease-fire is set to take effect at 4 a.m. Wednesday, Biden said.
Hezbollah has not immediately commented on the deal announcement, the New York Times reported. Lebanon&#8217;s government does not control the Hezbollah militant group. 
The deal calls for a 60-day truce, The New York Times reported, and would be overseen by the U.S., United Nations and others. Israel would withdraw forces from Lebanon and Hezbollah would move fighters to north of the Litani River.
Strikes between Israel and Hezbollah have continued during the cease-fire negotiations.
What Happened: The short-term proposal is to pause hostilities for 60 days but with the intention of a lasting truce, according to <a href="https://www.cnn.com/world/live-news/israel-hezbollah-ceasefire-deal-gaza-war-11-26-24-intl-hnk/index.html">CNN</a>, which cited an Israeli official. 
Israeli Prime Minister Benjamin Netanyahu offered three reasons for the cease fire, one being to shift focus to Iran, replenish Israeli troops and put greater pressure on Hamas to release the hostages that were captured <a href="https://www.benzinga.com/news/23/10/35136071/israel-under-siege-unprecedented-hamas-attack-sparks-intense-clashes-netanyahu-says-we-are-at-war">on Oct. 7, 2023</a>.
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Why It Matters: Not everyone is so confident the cease-fire will work.
Per the <a href="https://www.nytimes.com/live/2024/11/26/world/israel-hezbollah-lebanon-cease-fire">New York Times</a>, Israel&#8217;s national security minister Itamar Ben-Gvir stressed the need for a "security zone" inside Lebanon to defend against Hezbollah. Otherwise, the two countries risk another war in the future, he said. 
Ben-Gvir did not indicate that a cease-fire decision would cause him to leave Netanyahu's coalition.
<h3 class="wp-block-heading">Market Reactions</h3>
Oil prices were trading down Tuesday, with the United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) 0.65% lower at last check. 
Israeli stocks, as monitored through the VanEck Israel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ISRA#NYSE">ISRA</a>) are up 23.5% year-to-date.
Other oil ETFs were in the red at last check Tuesday afternoon.
ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) fell by 0.93%, SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) was down 0.75% ahead of the closing bell and MicroSectorsTM Oil &amp; Gas Exploration &amp; Production 3X Leveraged ETNs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILU#NYSE">OILU</a>) saw a 0.45% drop, according to <a href="https://pro.benzinga.com">Benzinga Pro</a>.
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Image: Shutterstock.

Ceasefire Deal Between Israel, Hezbollah Takes Effect Wednesday: Biden

Amid&nbsp;Donald Trump&#8216;s recent pledge to boost U.S. oil production significantly, questions arise about the necessity and impact of such a move.&nbsp;Vikas Dwivedi, a global energy strategist at&nbsp;Macquarie Group, has expressed skepticism regarding the need for an additional 3 million barrels per day.
What Happened: Dwivedi discussed the potential impact of Trump&#8217;s second term on the U.S. oil supply. Talking to&nbsp;<a href="https://www.cnbc.com/video/2024/11/25/us-oil-supply-increases-will-be-marginal-with-trump-2point0-macquarie.html">CNBC</a> &#8220;Squawk Box&#8221;&nbsp;on Monday, he said that anticipates only marginal increases in supply, despite Trump&#8217;s <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/42130859/as-trump-backs-drill-baby-drill-his-doge-co-lead-elon-musk-believes-all-energy-generation-will-be-solar-heres-what-ubs-recommends-after-election-dip">&#8220;Drill Baby Drill&#8221; stance.</a>
&#8220;We actually think there will be marginal supply increases from the U.S. The risks to supply will eventually be marginal but in the beginning of the administration, we think, the moves that they will make will increase supply risks,&#8221; Dwivedi said, adding the risks arising particularly through attempts to limit Iranian oil exports. He noted that the Ships Act aims to eliminate entities facilitating Iranian crude sales, but this could inadvertently reduce global oil supply.
Addressing Trump&#8217;s ambitious energy policy, Dwivedi questioned the necessity of increasing U.S. oil production.
&#8220;The real challenge is: does the world need that much oil? And if the U.S. did grow 3 million barrels a day during the Trump Administration, that&#8217;s like 750,000 a day over four years,&#8221; he explained
&#8220;I think the right question to ask energy executives is are you okay with $40 oil because I think that&#8217;s what you would end up with and are you okay with trying to figure out how to maintain production and um you know still be able to do the dividends and the share buybacks that are now not as discretionary as they used to be.&#8221;
Furthermore, Dwivedi highlighted the geopolitical risks associated with a rapid U.S. withdrawal of support for Ukraine. He warned that if Ukraine feels cornered, it might target Russian oil infrastructure, which could further impact the global oil supply.
See Also:&nbsp;<a href="https://www.benzinga.com/markets/equities/24/11/42153356/is-warren-buffett-preparing-for-a-market-downturn-with-berkshire-hathaways-325b-cash-pile-analyst-says-internet-bubble-and-2008-crash-may-have-lessons?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Is Warren Buffett Preparing For A Market Downturn With Berkshire Hathaway&#8217;s $325B Cash Pile? Analyst Says</a>
Why It Matters: Trump&#8217;s energy strategy, which includes faster permitting and weaker environmental regulations, aims to cut American energy costs significantly. However, experts have warned that these<a href="https://www.benzinga.com/news/24/09/40703958/trumps-drill-baby-drill-pledge-may-not-deliver-promised-energy-price-cuts-experts-warn"> promises may not materialize</a> due to the complexities of global and regional energy markets. Many oil drillers remain cautious about increasing production, opting instead to return cash to shareholders. This hesitancy is compounded by factors like weather patterns and global conflicts, which are not easily influenced by policy changes.
Meanwhile, Elon Musk, who has been announced to head the new Department of Government Efficiency (DOGE), continues to <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/42130859/as-trump-backs-drill-baby-drill-his-doge-co-lead-elon-musk-believes-all-energy-generation-will-be-solar-heres-what-ubs-recommends-after-election-dip">advocate for solar power</a> as the future of energy generation, presenting a different vision from Trump&#8217;s fossil fuel-focused approach. Analysts also see an opportunity for investment in renewables, highlighting the sector&#8217;s potential for growth even amid political shifts.
Price Action: As per <a href="https://pro.benzinga.com">Benzinga Pro</a>, oil ETFs have seen slight gains in the past one month surrounding the presidential elections. As of Monday, ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) increased 3.51%, SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) increased by 10.78%, while MicroSectorsTM Oil &amp; Gas Exploration &amp; Production 3X Leveraged ETNs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILU#NYSE">OILU</a>) increased by 20.99%.
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</ul>
Image via Shutterstock

General

Amid Trump's 'Drill Baby, Drill' Pledge, Strategist Predicts US Oil Supply Will See 'Marginal' Increase: 'Does The World Need That Much Oil?'

President-elect Donald Trump is considering appointing an &#8220;energy czar,&#8221; a role that would have the authority to nix environmental regulations and increase U.S.<a href="https://www.benzinga.com/government/24/11/41831044/how-to-play-the-trump-trade-for-ai-energy-taxes-analyst-says-5-stocks-could-shine"> fossil fuel production. </a>
What Happened: Trump is looking to appoint an overseer of deregulation efforts across various agencies, including the Department of Energy, Department of Interior, Federal Energy Regulatory Commission, and Environmental Protection Agency.
According <a href="https://www.ft.com/content/f75bd3f1-213f-4501-9005-58b42205ffff">to</a> the Financial Times, North Dakota Gov. and billionaire Doug Burgum is the frontrunner for this so-called energy czar position. 
Read More: <a href="https://www.benzinga.com/general/biotech/24/11/41822473/trumps-potential-health-czar-robert-f-kennedy-jr-rattles-vaccine-stocks-shoot-first-reaction">Trump&#8217;s Potential &#8216;Health Czar&#8217; Robert F. Kennedy Jr. Rattles Vaccine Stocks: &#8216;Shoot First Reaction&#8217;</a>
Burgum initially competed in the Republican primary before endorsing Trump. He previously headed Great Plains Software, becoming its president in 1984, and selling the company to Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) in 2001 for $1.1 billion. 
He has also served on the board of Atlassian Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TEAM#NASDAQ">TEAM</a>) and most recently served as an energy advisor to Trump during his latest presidential campaign. 
Why It Matters: The news coincides with John Podesta, Biden&#8217;s lead climate diplomat, appearing at the UN climate summit in Baku, Azerbaijan, Monday. He <a href="https://www.axios.com/2024/11/11/top-biden-climate-diplomat-criticizes-trump-at-un-summit">called</a> the Nov. 5 presidential election outcome &#8220;bitterly disappointing.&#8221;
Over the past four years, the Biden Administration <a href="https://www.benzinga.com/personal-finance/24/05/38796993/bidens-1-6-trillion-investment-in-green-energy-sector-has-hit-stonewall-in-the-form-of-unspent-c">expanded clean energy initiatives</a> and <a href="https://www.benzinga.com/government/23/10/35240230/us-is-producing-more-oil-under-biden-than-at-any-point-under-the-trump-administration">produced more oil </a>than the previous Trump Administration.
Ali Zaidi, Biden&#8217;s national climate adviser, will likely be replaced with an energy czar as president-elect Trump targets current climate and energy regulations (i.e., vehicle emissions rules and lifting restrictions on oil and gas drilling). 
Analysts <a href="https://www.benzinga.com/news/24/11/41781921/what-does-trumps-victory-mean-for-ev-giant-tesla-and-the-big-3-automakers">have said </a>such changes could spell trouble for the clean energy and electric vehicle industry, but could be a boon for oil and gas companies.&nbsp;
EV-makers including Rivian Automotive, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) and Lucid Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LCID#NASDAQ">LCID</a>) could see fewer sales if the Trump administration pulls rebates and tax incentives. However, oil and gas companies like Exxon Mobil Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) and Chevron Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) could see increased profits as Trump has vowed to lift restrictions on drilling and traditional energy production. 
Investors can also monitor the effects of potential policy changes in the broader EV sector through the iShares Self-Driving EV and Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IDRV#NYSE">IDRV</a>) and oil through the ProShares Ultra Bloomberg Crude Oil ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>). 
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Oil-based exchange-traded funds (ETFs) experienced a significant decline, dropping over 4%, following Israel&#8217;s recent military strikes on Iran. The strikes, which occurred over the weekend, were reported as &#8220;limited&#8221; by local media, leading analysts to downplay the potential impact on oil supplies.
What Happened: Israel&#8217;s military targeted Iranian sites in three provinces on Saturday in response to a ballistic missile attack by Tehran on October 1. According to the Iranian news agency Tasnim, the strikes resulted in the deaths of four soldiers and caused &#8220;limited damages,&#8221; sparing oil, nuclear, and civilian infrastructure. Post the strikes, oil prices saw a sharp decline of more than 4% on Monday, CNBC <a href="https://www.cnbc.com/2024/10/28/oil-slides-over-4percent-as-israels-attack-on-iran-unlikely-to-disrupt-supplies.html">reported</a> on Monday. I
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Following the attacks, several oil ETFs recorded notable losses.
During pre-market hours on Monday, ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) fell by 8.41%, United States Oil Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) dropped 4.69%, SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) decreased by 1.81%, and MicroSectorsTM Oil &amp; Gas Exploration &amp; Production 3X Leveraged ETNs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILU#NYSE">OILU</a>) saw a 4.54% drop, according to <a href="https://pro.benzinga.com">Benzinga Pro</a>.
Despite the tensions, Iran&#8217;s oil industry remains unaffected, with operations continuing as usual. Iran is responsible for up to 4% of the global oil supply, as per the U.S. Energy Information Administration. The attack comes after an Iran-backed Hamas assault on Israel on Oct. 7 last year.
Why It Matters: The recent strikes add to the ongoing geopolitical tensions that have kept energy markets on edge. Earlier this month, oil prices had already dipped by 2% after OPEC reduced its<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41320277/oil-prices-drop-2-as-opec-cuts-forecast-irans-output-rises-analyst-says-netanyahu-m"> global oil demand growth forecast</a> for the third consecutive month. This was due to actual consumption data and slightly lowered demand expectations.
Experts had warned that an Israeli attack on Iranian oil facilities could significantly disrupt global oil prices. John Driscoll, chief strategist at JTD Energy Services, highlighted the potential for <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41309234/israels-attack-on-iran-would-rattle-the-nerves-of-oil-market-says-expert">such actions to unsettle the market</a>, drawing parallels to past incidents like the 2019 drone attacks on Saudi oil fields.
Although Iran&#8217;s oil production is lower due to sanctions, any disruption could still lead to a price increase.
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Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
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