Benefiting from rising international oil prices, the energy sector led the S&P 500 index for the first time in many years, and U.S. President Donald Trump's oil and gas investment portfolio saw a significant increase in profits this year. However, as midterm elections approach, American families may face the highest energy bills in history, which poses a major challenge to the Republican Party, which will also be holding midterm elections next week.
According to the data provided by Seaport Research, as the global benchmark Brent crude oil price has risen by over 70% since the beginning of this year, and the US benchmark WTI crude oil price has increased by nearly 75%, the profits of American energy companies have grown by more than 100% compared to the same period last year.
Although most of the focus in the stock market is on artificial intelligence trading, the energy sector is expected to be the best-performing segment of the S&P 500 index in 2026, according to Rob Toumel, a senior investment portfolio manager at Tortoise Capital. He stated that the industry continues to benefit from rising oil prices, with global refining capacity shortages leading to scarce supply and increased refining profit margins.
Energy stocks hitting record highs also played a role in maintaining the bull market. As of Tuesday, the S&P 500 index had risen by nearly 13%, while the S&P 500 Energy Index had increased by about 52%, setting a new historical high. Dow Jones Market Data shows that the energy index is on track to have its best year since 2022.
According to a report released on Monday by the Joint Economic Committee of Congress, U.S. President Donald Trump himself has also reaped substantial economic benefits from holding energy stocks.
The report states that Trump's personal wealth from investments in oil and natural gas stocks has increased by as much as $35.8 million so far this year. It also mentions that this has brought his net holdings in this sector to $81.6 million, meaning that since the end of 2025, his wealth from oil and natural gas has almost doubled.
White House spokesman Davis Engel stated that Trump's stock and bond portfolio is "independently managed by a third-party financial institution." All investment decisions are "made solely by independent managers with no conflicts of interest."
Trump has recently been praising the wealth gained by American energy companies during the Iran conflict, while also campaigning nationwide in support of Republican candidates in preparation for next week's midterms.
"The U.S. oil and gas industry is making billions of dollars," Trump said at a political rally in Perry, Georgia. Buyers have flocked to Texas, Oklahoma, and Louisiana to purchase oil. The U.S.-Israel strikes against Iran that began at the end of February have led to severe supply bottlenecks in the Persian Gulf. "We're making a lot of money."
However, despite the rise in energy prices driving the stock market to a series of record highs this year, not everyone has felt the impact of the increasing stock prices. Kim Kennnis, a senior economist at KPMG, stated: "Low-income families often do not own stocks or have 401(k) accounts. These families have been directly affected by the rising energy prices, which have impacted their wages. This is why economic affordability remains a key issue in the upcoming elections."
According to the data from GasBuddy, the surge in oil prices has led to a roughly 40% increase in the retail cost of regular unleaded gasoline compared to the same period last year, reaching $4.246 per gallon on Tuesday.
White House spokesperson Ingel stated that the president's priority remains to reduce oil prices for American families. As the war with Iran continues, Trump has taken a number of measures to lower domestic fuel prices, including his decision to issue exemptions under the Jones Act, which temporarily lifted some restrictions on maritime oil transportation between different destinations in the United States. This exemption was extended until mid-November. Recently, he also announced plans to use funds from the Defense Production Act to expand domestic oil production, storage, and refining.
Patrick De Haan, the head of oil analysis at GasBuddy, stated that these efforts have had limited effectiveness so far. He said that since March 1st, Americans have spent about an additional $145 billion on gasoline and diesel compared to the same period last year. Furthermore, De Haan posted on social media that this year was supposed to be the year with the lowest oil prices since 2020, but the war in Iran could make it "the most expensive year in history."
