Why Energy Select Sector (XLE) rose 2.55%
Energy Select Sector (XLE) rose 2.55% on October 24, 2026 — Hormuz ship attacks at record highs lift energy.
What happened
The energy sector ETF rose 2.6% with the Oil & Geopolitics rally, following Reuters' report that ship attacks in the Strait of Hormuz hit a record high in October.
Why it moved
XLE holds large integrated and upstream producers whose earnings track the crude price, so a sector-wide repricing of Gulf supply risk lifts the whole basket together.
Why it matters
This is the Oil & Geopolitics theme, where Hormuz and Gulf supply risk keeps crude and diesel bid. Integrated majors like Chevron capture much of that premium, and XLE gives broad exposure to the group.
What would break the thesis
If Hormuz routing normalizes and crude gives back the spike, the sector premium will unwind across the ETF's holdings. A broad market selloff would also weigh on the basket regardless of oil prices.