Energy stocks were higher Monday afternoon, with the NYSE Energy Sector Index rising 2% and the State Street Energy Select Sector SPDR ETF (XLE) adding 1.8%.

The Philadelphia Oil Service Sector Index increased 0.5%, and the Dow Jones US Utilities Index fell 2.4%.

In sector news, Iran's reported threats to halt the indirect peace talks with Washington sent crude oil prices higher. Iranian negotiators will stop exchanging messages with the US through intermediaries, and Tehran will fully close the Strait of Hormuz in retaliation against ongoing ceasefire violations, CNBC reported, citing Iran's state-affiliated news outlet Tasnim on Monday. The report, in a translated post on the social media site Telegram, homed in on Israel's military operations in Lebanon against the Iran-backed militia Hezbollah, CNBC reported.

Front-month West Texas Intermediate jumped 6.3% to $92.86 a barrel, and the global benchmark Brent crude contract climbed 5.4% to $96.05 a barrel. Henry Hub natural gas futures fell 3% to $3.19 per 1 million BTU.

In corporate news, Devon Energy (DVN) shares jumped 4%. Reuters reported Friday that Devon received an $8 billion offer from Stone Ridge Asset Management for its Marcellus shale assets in Pennsylvania.