Energy stocks gained Tuesday afternoon, with the NYSE Energy Sector Index rising 1% and the State Street Energy Select Sector SPDR ETF (XLE) adding 1.4%.
The Philadelphia Oil Service Sector Index was falling 1.1%, and the Dow Jones US Utilities Index advanced 0.5%.
Crude oil prices rose after the deadline to reach a permanent peace deal with Iran expired. "There are no talks or conversations going on, or scheduled, with the Islamic Republic of Iran," President Donald Trump posted on his social media platform. "The Hormuz Strait is open and operating. All water mines have been removed or detonated."
Meanwhile, Reuters reported, citing Iran's negotiator Mohammad Baqer Qalibaf in state media on Tuesday that Hormuz will remain closed until the US meets the conditions of an interim deal signed with Iran in June.
Front-month West Texas Intermediate crude oil rose 0.6% to $85.04 a barrel, and the global benchmark Brent crude contract added 0.4% to $91.20 a barrel. Henry Hub natural gas futures increased 2.4% to $2.75 per 1 million BTU.
In corporate news, KKR (KKR) has offered to buy natural-gas and electricity distributor UGI (UGI) for $42.50 per share, or roughly $9 billion, The Wall Street Journal reported. UGI shares jumped past 11%.
Targa Resources (TRGP) said late Monday it has struck new 20-year fee-based, midstream agreements to support ExxonMobil's (XOM) development of its Permian Basin acreage. Targa shares jumped past 7%.
Petrobras (PBR) is weighing granting Braskem (BAK) improved payment terms on some contracts as the petrochemical producer approaches an Aug. 24 deadline to file for bankruptcy protection, Bloomberg reported. Petrobras shares were fractionally lower, and Braskem was down 2.2%.
Ecopetrol (EC) has completed the acquisition of a controlling 51% stake in Brava Energia for about $1.20 billion, boosting its presence in Brazil and diversifying its hydrocarbons portfolio, the company said. Ecopetrol shares eased 0.2%.