Oil prices jumped more than 4% on Feb. 18, 2026 after U.S. Vice President JD Vance said Iran failed to meet key American demands during recent nuclear negotiations and warned that military action remains an option if diplomacy breaks down, as quoted on CNBC. United States Oil Fund, LP (USO) added 4.9% on Feb. 18 while the fund gained 0.8% after hours.
Rising Geopolitical Tensions Add Supply Concerns
U.S. envoys Steve Witkoff and Jared Kushner held talks with Iranian officials in Geneva. Iran’s foreign minister Abbas Araghchi described the discussions as constructive. Oil prices had fallen earlier after markets interpreted these comments as a sign that negotiations could succeed.
However, sentiment reversed after Vance said Tehran had not addressed core U.S. “red lines,” as mentioned in the same CNBC article. Meanwhile, Iran conducted military exercises in the Strait of Hormuz — a critical route for global energy shipments — raising fears that oil flows could be disrupted in the event of conflict.
Note that about one-third of all waterborne crude exports pass through this narrow waterway, according to data from energy consulting firm Kpler, as quoted on CNBC. The United States too has strengthened its military presence in the Middle East by deploying aircraft carriers.
Leveraged ETFs to Gain
Escalating tensions could threaten supply of oil through key shipping routes. If oil prices gain in the near term, the below-mentioned leveraged ETF areas are likely to gain.
ProShares Ultra Bloomberg Crude Oil UCO
The ProShares Ultra Bloomberg Crude Oil seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the Bloomberg Commodity Balanced WTI Crude Oil Index. The fund UCO added 8.3% on Feb. 18, 2026 while the fund advanced about 1.5% after hours.
MicroSectors Energy 3X Leveraged ETNs WTIU
The MicroSectors Energy 3X Leveraged ETNs is linked to three times leveraged participation in the performance of the Solactive MicroSectors Energy Index, compounded daily, minus the applicable fees. The fund WTIU added about 4% on Feb. 18, 2026 while the fund advanced about 1% after hours.
Direxion Daily Energy Bull 2X Shares ERX
The Direxion Daily Energy Bull 2X Shares seeks daily investment results, before fees and expenses, of 200% of the performance of the Energy Select Sector Index. The fund ERX added about 4% on Feb. 18, 2026 while the fund gained about 0.4% after hours.
Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares GUSH
The Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2x Shares seek daily investment results, before fees and expenses, of 200% of the performance of the S&P Oil & Gas Exploration & Production Select Industry Index. The fund GUSH added about 3.8% on Feb. 18, 2026 while the fund rose about 0.1% after hours.
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Direxion Daily Energy Bull 2X Shares (ERX): ETF Research Reports ProShares Ultra Bloomberg Crude Oil (UCO): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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