Energy stocks were higher Wednesday afternoon, with the NYSE Energy Sector Index rising 1.4% and the State Street Energy Select Sector SPDR ETF (XLE) adding 2%.
The Philadelphia Oil Service Sector Index was increasing 0.4%, and the Dow Jones US Utilities Index advanced 0.5%.
Crude oil futures rose as Iran struck Gulf nations Kuwait and Bahrain with missiles amid faltering diplomacy with Washington, The Wall Street Journal reported. Kuwait came under a barrage of ballistic missiles and drones on Wednesday that shut its international airport, killed one person, and injured dozens more, as Iran launched its largest salvo of the near two-month ceasefire, the report said.
Front-month West Texas Intermediate crude oil climbed 2.6% to $96.21 a barrel, and the global benchmark Brent crude contract rose 2.2% to $98.09 a barrel. Henry Hub natural gas futures increased 2.2% to $3.24 per 1 million BTU.
In corporate news, Xcel Energy (XEL) said Wednesday its Colorado utility unit has reached a non-unanimous settlement agreement in its electric rate case before the Colorado Public Utilities Commission and has reaffirmed its 2026 earnings per share guidance of $4.04 to $4.16. Xcel Energy shares rose 0.7%.