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Sector Update: Energy

-- Energy stocks were higher Monday afternoon, with the NYSE Energy Sector Index rising 0.8% and the State Street Energy Select Sector SPDR ETF (XLE) up 0.6%.

The Philadelphia Oil Service Sector Index was decreasing 0.3%, and the Dow Jones US Utilities Index was steady.

In sector news, oil prices rose Monday following an apparent flare-up between the US and Iran ahead of the expiration of their ceasefire agreement this week. Oil prices had plunged on Friday as Iran declared that the Strait of Hormuz was open, a key US demand. Tehran, however, took back control of the waterway on Saturday. Both sides have accused each other of violating a two-week ceasefire that is due to expire Tuesday.

Front-month West Texas Intermediate crude oil jumped 5.7% to $88.61 a barrel, and the global benchmark Brent crude contract popped 5.2% to $95.12 a barrel. Henry Hub natural gas futures rose 1.1% to $2.70 per 1 million BTU.

In corporate news, Eni (E) and Repsol have reached a deal with the Venezuelan government to begin exporting natural gas from the country's Perla field in the Gulf of Venezuela, shipping the fuel in the form of liquefied natural gas from a floating terminal, Bloomberg reported. Eni shares rose 0.9%.

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