Which equity indices feel oil volatility the most?

After Iran’s closure of the Strait of Hormuz triggered one of the largest oil supply disruptions in history, West Texas Intermediate crude posted a 35.63% weekly surge, its biggest gain since the futures contract began trading in 1983.

Today, prices swung sharply lower, with WTI falling around 9% to near $81 a barrel after President Donald Trump suggested the U.S. could move to secure shipping through the Strait and said the war with Iran could be nearing an end.

Moves like these don't just affect oil. It can also ripple across equity markets, although the impact varies by index depending on sector composition.

The UK100 is one example of an index that may hold up. It has meaningful exposure to large energy and commodity names, particularly BP and Shell. With Shell among the index’s largest constituents, stronger oil prices can provide some support.

The AUS200 also has exposure to energy producers, which can help cushion the impact of rising oil prices. However, the index is also heavily weighted toward banks. If higher oil feeds inflation concerns, pressure on financial stocks could offset some of the support from the energy sector.