U.S. Energy ETF surges 29% in 5 months, outperforming S&P 500 amid crude price spike and strong oil majors' earnings.

The iShares U.S. Energy ETF (IYE) rose about 29% from the end of 2025 to mid-2026, significantly outperforming the S&P 500's 8% gain. This surge was driven mainly by crude oil prices doubling due to the de facto closure of the Strait of Hormuz, which tightened global supply. Major U.S. oil companies like ExxonMobil, Chevron, and ConocoPhillips reported strong earnings beats and maintained shareholder-friendly policies such as dividends and buybacks. However, the recent price pullback and forecasts of easing supply disruptions suggest the energy sector's strong run may face challenges in the latter half of 2026, making future gains dependent on geopolitical developments and capital discipline by oil majors.