As the Iran War Resumes, 2 Energy ETFs Ride Oil’s Renewed Rally

Summary

After leading the markets for much of the first half of the year, energy stocks tapered off from mid-May through the start of July as a tenuous agreement between Iran and the United States helped normalize oil prices. But tensions in the Middle East have once again flared up, with the two countries exchanging missile fire and conflicting statements about maritime traffic in the Strait of Hormuz. On June 17, the countries signed a memorandum of understanding that extended the ceasefire for 60 days while they negotiated a final agreement. The price of Brent crude—the global oil benchmark—had already begun moderating, falling nearly 40% from its year-to-date (YTD) high of $118.35 on March 31 to $71.44 by July 1. However, over the past two weeks, fighting has resumed. On July 8, President Donald Trump declared that the ceasefire with Iran was over. Iran has stated that the Strait of Hormuz is once again closed, which caused the Trump administration to retaliate with a renewed blockade. On July 13, the Trump administration announced that the United States would reinstate its blockade of Iranian ships and vessels serving Iranian ports or customers beginning July 14. The renewed volatility has put the energy trade back in focus, and the market reaction has been swift. From its July 1 low, Brent crude has risen more than 16%, while the energy sector has gained 3.49% over the past five trading sessions—the strongest performance among the S&P 500’s 11 sectors. For investors looking to participate in the rebound without selecting an individual oil stock, two exchange-traded funds (ETFs) offer distinct ways to gain exposure to rising oil prices. Vanguard’s Heavily Concentrated Oil Major ETFVanguard Energy ETF TodayVDEVanguard Energy ETF$160.91 +0.76 (+0.47%) As of 07/14/2026 04:10 PM Eastern52-Week Range$118.17▼$179.34Dividend Yield2.50%Assets Under Management$9.68 billion The Vanguard Energy ETF NYSEARCA: VDE is designed to track the performance of the Morgan Stanley Capital I...