Oil has mostly stayed above $100 a barrel over the past month because of the Iran war, and energy is the best-performing S&P 500 sector this year with a gain of more than 50%. The author argues energy stocks have limited upside unless oil keeps rising, and believes oil's next big move is lower once the conflict ends, with annualized inflation at 3.7% in September and prices driven by supply concerns rather than demand. Instead, the article points to consumer discretionary stocks (XLY), this year's worst sector with a 7% loss, which fell 36% in 2022 when Brent rose 35% but gained around 40% in 2023 as Brent finished down about 3%. The author stresses this is not a prediction that the pattern will repeat.
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Related tickers and likely impact
VNINDEX
▼ Likely negativeRelevance: low
| Market | Vietnam stocks |
|---|---|
| Close on 10/16/2026 | 1,705.91 |
| Change that session | +0.45% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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Oil has traded above $100 a barrel for most of the past month, driven by the Iran war, and energy is the best-performing S&P 500 sector this year with a gain of more than 50%. The author argues oil is rising on supply concerns rather than demand, so energy stocks could fall sharply once the conflict ends, and is less bullish on the sector. By contrast, consumer discretionary (XLY) is the worst-performing sector this year, down 7% and trailing the S&P 500 by roughly 20 percentage points, as annualized inflation of 3.7% in September and near all-time-low consumer sentiment weigh on it. The author points to 2022, when Brent rose 35% while XLY fell 36%, and 2023, when Brent fell about 3% while XLY gained about 40%, as reasons the sector could offer long-term opportunity, while stressing this is not a prediction.
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