Direxion Daily Energy Bull 2X ETF

ERX

Market cap $236M

Oil prices spiked after the U.S. announced a Hormuz blockade. Leveraged oil ETFs like ERX, GUSH, DIG and OILU could benefit.

A relative period of calm in the oil market may well be over, following last week's goings on in the Middle East. Most notably, the U.S. renewed military strikes against Iran, with President Trump potentially unnerving the oil market by saying the already fragile peace deal between the two countries is over.

Oil surges over 5% on extended Iran blockade fears. Leveraged energy ETFs like GUSH, ERX and OILU come into focus for short-term traders.

Energy ETFs gain appeal as oil prices are expected stay above pre-conflict levels, with supply shocks, stalled Iran talks & tight markets indicating sustained price strength.

Direxion Daily Energy Bull 2X ETF surged 84.4% in Q1 2026, outperforming XLE's 37% gain amid energy sector strength. U.S. energy companies benefit from geopolitical tensions, supportive U.S. policy, and global supply concerns, positioning XLE and ERX for continued profitability. ERX's leverage offers high reward but carries significant risk and time decay, making it suitable only for short-term tactical trades with disciplined stops.

In early 2026, the energy sector has reclaimed its title as one of — if not the — most volatile corners when it comes to the equities market. As Direxion CEO Doug Yones would say, heavy volatility makes for “perfect Direxion weather.

Conflict in Iran is spooking global markets, sending oil prices higher. Some geopolitical experts and professional investors are speculating that prolonged conflict there or a traditional boots-on-the-ground military campaign could send crude price soaring to $150 per barrel.

Rising U.S.-Iran tensions and limited OPEC+ supply hikes may lift oil prices, putting leveraged energy ETFs like ERX, GUSH, DIG and OILU in focus.

The first month of 2026 is already in the books. Which sector walked away with the top spot when it came to total returns?

Electricity demand is expected to reach peak levels in 2026 and beyond thanks to artificial intelligence (AI). This could make nuclear energy a more viable choice globally.