West Texas Intermediate crude oil prices surged from $57 to around $112 per barrel in 2026, driven by geopolitical tensions around the Strait of Hormuz involving Iran. This has created a sustained risk premium on seaborne oil, benefiting futures-based ETFs such as the United States Oil Fund (USO), United States Brent Oil Fund (BNO), and Invesco DB Oil Fund (DBO), all of which roughly doubled in value. Each fund offers different exposure: USO tracks near-month WTI futures and is highly liquid; BNO focuses on Brent futures, reflecting Middle East supply risks; and DBO optimizes contract rolls to maximize returns in backwardated markets. Investors should note these ETFs are tactical tools sensitive to futures curve shifts and are best for short- to medium-term trades rather than long-term holds due to potential roll costs if market conditions normalize.
