Energy stocks fell Monday with the NYSE Energy Sector Index dropping 1% and the State Street Energy Select Sector SPDR ETF (XLE) shedding 0.9%.
The Philadelphia Oil Service Sector Index slumped 4%, and the Dow Jones US Utilities Index declined 0.9%.
Oil prices rose after Iran claimed to have destroyed an advanced US drone over the Strait of Hormuz. Meanwhile, President Donald Trump said that Iran wants to reach a deal with Washington.
West Texas Intermediate crude oil rose 1.6% to $101.64 a barrel, and global benchmark Brent added 1.4% to $106.05 a barrel. Henry Hub natural gas futures gained 1.5% to $2.87 per 1 million BTU.
In corporate news, Chevron (CVX) is considering expanding its global gas portfolio to the Mediterranean and Argentina to meet growing demand, Reuters reported, citing Freeman Shaheen, the president of global gas. Separately, Chevron Australia President Balaji Krishnamurthy told Bloomberg TV in an interview that liquefied natural gas prices are unlikely to come down over the next six months or so. Chevron shares fell 0.9%.
NextEra Energy (NEE) continues to expect 2026 adjusted earnings per share of $3.92 to $4.02 and is targeting the high end of that range. The stock fell 0.8%.
Venture Global (VG) agreed to sell 500,000 metric tons of US liquefied natural gas a year for 20 years to China Gas beginning in 2030. Venture Global shares fell 3.4%.
YPF (YPF) is nearing two to three liquefied natural gas sales contracts totaling 500,000 to 1.5 million metric tons annually for its proposed $24 billion export project, Bloomberg reported, citing CEO Horacio Marin. YPF shares rose 1.4%.