US oil prices nearly double in 2026, driving key ETFs tracking futures to record highs amid Middle East tensions.
West Texas Intermediate crude climbed from $57 to $112 per barrel in 2026, driven by Iran-related tensions around the Strait of Hormuz and a sustained geopolitical risk premium. The surge has lifted oil-linked ETFs, including the United States Oil Fund (USO), which tracks WTI futures and has doubled to $141.
Three ETFs—USO, the United States Brent Oil Fund (BNO), and the Invesco DB Oil Fund (DBO)—have mirrored the rally but differ in structure. BNO captures the geopolitical premium tied to Brent crude, while DBO’s optimized roll methodology offers downside protection if backwardation normalizes.
All three funds hold futures contracts and Treasury collateral, structured as commodity pools with K-1 tax forms. Their performance reflects pure exposure to the futures curve, not equities like Exxon or Chevron.