Energy stocks are trouncing the rest of the stock market in 2026. Why the Iran war could erode those gains from here.

energy stocks are crushing the rest of the market in 2026, driven by rising oil prices. but those prices are reaching levels that could start eating into energy firms' own bottom lines. the iran war is the reason — and the risk. oil and gas companies are benefiting from the surge for now. but the same high prices that boost their revenue also raise their operating costs and could eventually destroy demand. the source says the gains could erode from here, with no specific price threshold given. the war in iran is the key variable that could flip the sector from winner to loser.