Oil Stocks Surge Amid Middle East Tensions: WTI Crude Futures Soar, Airline Shares Plummet

On Tuesday, June 17, 2025, WTI crude futures rose by 3%, with oil companies among the top gainers in the S&P 500 as investors evaluated the latest developments in the ongoing conflict between Israel and Iran. West Texas Intermediate (WTI) crude futures surged more than 4% in mid-afternoon trading to reach approximately $75 per barrel. Shares of Valero Energy (VLO), APA (APA), Marathon Petroleum (MPC), Chevron (CVX), Hess (HES), and Occidental Petroleum (OXY) all increased by more than 2%, with Valero up 3.4%. The rise in oil prices was fueled by a pair of posts on Truth Social by President Donald Trump amid the ongoing tensions between Israel and Iran. In one post, Trump stated that "We know exactly where the so-called 'Supreme Leader' is hiding," referring to Iran's Supreme Leader Ayatollah Ali Khamenei. In another post, he called for Iran's "UNCONDITIONAL SURRENDER!" These statements raised concerns about a potential protracted conflict in the Middle East, leading to increased supply fears and higher oil prices. In contrast, airline stocks fell on Tuesday, with United Airlines (UAL) and Delta Air Lines (DAL) among the biggest decliners in the S&P 500, down 5% and 4%, respectively. Fuel is a significant and unpredictable expense for airlines, and Delta's purchase of an oil refinery near Philadelphia in 2012 highlights their reliance on stable oil prices.