![\"Oil](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/07\/1785177070_704_.jpeg\"\/)
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Image source: Getty Images.<\/p>\n
More volatility is likely ahead<\/p>\n
As of this writing, the State Street Energy Select Sector SPDR ETF (XLE<\/a> -1.34%) traded more than 1.5% lower. Lower oil prices mean lower profits for the oil companies, so this kind of price action is understandable.<\/p>\n However, the volatility surrounding U.S.-Iranian negotiations is likely to persist, as the two sides have not made meaningful progress toward enduring peace, despite signing a memorandum of understanding in June.<\/p>\n On July 27, Esmail Baghaei, Iran\u2019s Foreign Ministry spokesperson, said the country \u201ccurrently have no negotiations with the United States,\u201d according to CNBC.<\/p>\n The conflict has also seemingly broadened. <\/p>\n While the focus has long been on the Strait of Hormuz, a narrow body of water bordering Iran and Oman through which one-fifth of global oil flows in normal times, it could now be expanding to the Red Sea.<\/p>\n Recently, the Houthis, an Iranian proxy group, have launched attacks on Saudi Arabian oil tankers, stoking concerns about further pressure on the global oil market.<\/p>\n Select Sector SPDR Trust – State Street Energy Select Sector SPDR ETF<\/p>\n Today’s Change<\/p>\n (-1.34%) $-0.80<\/p>\n Current Price<\/p>\n $58.82<\/p>\n Key Data Points<\/p>\n AUM<\/p>\n $40B<\/p>\n Dividend Yield<\/p>\n 3.22%<\/p>\n Expense Ratio<\/p>\n 0.08%<\/p>\n Top Holdings<\/p>\n XOM<\/p>\n 20.79%<\/p>\n CVX<\/p>\n 15.11%<\/p>\n COP<\/p>\n 6.07%<\/p>\n “For the moment, the oil market doesn’t appear to be pricing in any extended blockade,” ANZ analysts wrote in a recent note, according to The Wall Street Journal. “But oil markets are likely to tighten further if Houthi attacks worsen.”<\/p>\n Continue to have some exposure to oil<\/p>\n While both the U.S. and Iran don\u2019t appear to see eye to eye on many of the core issues currently preventing a longer-term agreement, the Trump administration has clear incentives to wind down the conflict, especially with midterm elections approaching.<\/p>\n The yield on the 10-year U.S. Treasury note recently hit 4.7%, a dangerously high level for an economy that has remained remarkably resilient but is not invincible. Many economists have warned that if the 10-year note breaches the 5% level, that could put the economy in a vulnerable place.<\/p>\n![\"Select](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/07\/1785177070_999_.png\"\/)
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