Key Highlights

● XOM rose Friday as Brent settled at $109.86, its highest close since May 19.

● Iran's escalating tanker attacks in the Strait of Hormuz drove the crude spike.

● Energy led the S&P 500, which fell 84.62 points to 7,659.44.

● Fed's rate decision is due Oct 28; Halliburton, Kinder Morgan, Valero report Oct 20–22.

Oil's jump lifted the majors

Exxon Mobil (NYSE:XOM) rose on Friday, joining a broad rally in energy shares as global crude prices hit their highest levels in months. Brent crude, the international benchmark, climbed $3.94 to settle at $109.86 a barrel, its highest close since May 19, according to market data. Brent also touched $110 during the session for the first time since May.

The move was driven by Iran escalating attacks on tankers in the Strait of Hormuz, the narrow waterway that carries a large share of the world's seaborne oil, along with threats to Russian refining, according to market reports. US benchmark West Texas Intermediate also gained, though closing quotes differed by contract and source: the December contract was put at $99.02, up $2.52, while other sources cited prices above $101. WTI traded above $101 intraday.

Chevron (NYSE:CVX), Exxon's closest US rival, also rose, according to market data. A published headline noted that higher refining margins had added about $4.5 billion to Exxon's earnings.

Energy led a split market

The gains stood out on a difficult day for the broader market. The S&P 500 fell 84.62 points to 7,659.44, the Dow Jones Industrial Average lost 175.28 points to 52,002.41, and the Nasdaq Composite slid 572.99 points to 26,140.03. Energy was the best-performing sector in the S&P 500, and six of the index's 11 sectors finished higher, according to market data.

Investors sold technology and chip stocks over concerns about how the build-out of artificial intelligence will be financed, and rotated into energy, utilities, consumer staples, health care and financials. The Cboe Volatility Index, Wall Street's fear gauge, rose 3.53 points to 19.99 after touching 22.31 intraday, its highest since June 11.

ING commodities strategists said oil is "pricing in a significant risk premium."

Geopolitics in the driver's seat

Rhetoric from Washington added to the tension. "Now, we're looking at Pickaxe Mountain. We may have to go there," President Donald Trump said of Iran.

There were also efforts to cool the market. The International Energy Agency pledged to release the remaining 100 million barrels under its March agreement, a Saxo Bank analyst noted.

For consumers, the price shock is already visible at the pump. US gasoline averages $4.33 a gallon, compared with $3.06 a year ago, according to market data.

Exxon, the largest US oil company by market value, operates across exploration and production, refining and chemicals, which gives it exposure to both higher crude prices and wider fuel margins.

Rates and the Fed

The backdrop on rates was supportive. The 10-year Treasury yield eased to roughly 5.1 by the close and fell for the week, after topping 5.3 earlier in October, its highest level since 2002. Federal Reserve Chair Kevin Warsh, speaking at an IMF gathering in Bangkok, declined to preview the central bank's next move. "I don't prejudge meetings," he said.

Energy Earnings and Hormuz Risks Ahead

The Fed's next rate decision is due Oct 28, following a quarter-point hike in September, its first increase in three years. Markets still price a hike by December, though odds of an October move fell sharply after spiking on Wednesday's hot consumer price report. In energy, Halliburton (NYSE:HAL) reports Oct 20, Kinder Morgan (NYSE:KMI) on Oct 21, Valero (NYSE:VLO) on Oct 22 and SLB (NYSE:SLB) on Oct 23. Traders will also track any further incidents in the Strait of Hormuz and the pace of the IEA's stock release.