With crude oil prices breaking above $70 per barrel for the first time since 2014, energy ETFs were leading the market rebound Monday.
The United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, rose 1.2% on Monday while the United States Brent Oil Fund (NYSEArca: BNO), which tracks Brent crude oil futures, gained 1.4%. WTI crude oil futures were 1.2% higher to $70.5 per barrel and Brent crude was up 1.5% to $76.0 per barrel.
Meanwhile, the Energy Select Sector SPDR (NYSEArca: XLE), the largest U.S.-listed energy sector ETF by assets, jumped 1.7% Monday.
Crude oil prices have increased more than 10% over the past month after President Donald Trump signaled it is likely the U.S. will withdraw from a 2015 international agreement with Iran that eased sanctions in return for curbs to the country’s nuclear program, the Wall Street Journal reports.
Traders were concerned that with the deal off the table, Iranian exports could quickly halt, cutting down global supply.