ASX 200 energy shares outperformed the 10 other market sectors as the war in Iran raged on last week.
In fact, energy was the only sector to finish the week in the green, rising 1.72%.
The broader market remained unsettled, with the benchmark S&P/ASX 200 Index (ASX: XJO) falling 2.64% to 8,617.1 points.
Traders and investors worried that the war could turn into an entrenched conflict that would keep oil prices elevated.
This would have significant implications for inflation and interest rates, as higher petrol and gas prices would create greater cost pressures across entire economies.
Amid the uncertainty of what will happen next, the ASX 200 was volatile and oil prices spiked, then slumped, then spiked again.
At the start of the week, oil prices surged 25% to nearly US$120 per barrel before cliff diving to less than US$90 the very next day.
Oil prices have gone higher due to the effective shutdown of the Strait of Hormuz.
More than 20% of the world's global oil and gas exports, mostly from Iran, Iraq, Qatar, and the UAE, pass through the strait.
By Friday, Brent Crude was trading above US$100 per barrel again, while WTI Crude was fetching US$95 per barrel.
On Friday, Trading Economics analysts said:
Iran's new Supreme Leader Mojtaba Khamenei pledged to keep the Strait of Hormuz effectively shut.
He also warned that Iran may open additional fronts in the conflict if the US and Israel continue their attacks, while US President Donald Trump said preventing Iran from obtaining nuclear weapons and posing a threat to the Middle East is more important to him than the cost of oil.
Image source: Getty Images
Energy shares led the ASX sectors last week
Let's take a look at how some of the ASX 200 energy shares performed last week.
ASX 200 oil & gas giant Woodside Energy Group Ltd (ASX: WDS) rose 0.94% to close the week at $31.04 per share.
The Santos Ltd (ASX: STO) share price also lifted 0.94% to $7.53.
The Beach Energy Ltd (ASX: BPT) share price ascended 0.87% to $1.16.
The Ampol Ltd (ASX: ALD) share price fell 0.36% to $30.85.
The Viva Energy Group Ltd (ASX: VEA) share price rose 1.9% to $2.14.
The Karoon Energy Ltd (ASX: KAR) share price finished the week 1.1% higher at $1.84.
ASX 200 coal shares also rose last week, as gas supply disruptions forced power plants around the world to switch to coal.
The Yancoal Australia Ltd (ASX: YAL) share price ripped 27.33% to $8.06, after hitting a new 52-week high of $8.27 on Friday.
Whitehaven Coal Ltd (ASX: WHC) shares ascended 10.26% to $9.35 apiece.
The New Hope Corporation Ltd (ASX: NHC) share price lifted 6.15% to $5.35, after reaching a 52-week peak of $5.41 on Friday.
ASX 200 market sector snapshot
Here's how the 11 market sectors stacked up last week, according to CommSec data.
Over the five trading days:
| S&P/ASX 200 market sector | Change last week |
| Energy (ASX: XEJ) | 1.72% |
| Financials (ASX: XFJ) | (0.37%) |
| Consumer Discretionary (ASX: XDJ) | (2.07%) |
| Utilities (ASX: XUJ) | (2.68%) |
| Consumer Staples (ASX: XSJ) | (2.69%) |
| Communication (ASX: XTJ) | (2.71%) |
| Industrials (ASX: XNJ) | (4.33%) |
| Healthcare (ASX: XHJ) | (4.64%) |
| Materials (ASX: XMJ) | (4.73%) |
| A-REIT (ASX: XPJ) | (5.04%) |
| Information Technology (ASX: XIJ) | (6.99%) |
