US energy stocks surge on $750 billion EU purchase pledge

US energy markets jumped Monday following the announcement of a historic trade agreement between the United States and the European Union, anchored by a pledge from the EU to import $750 billion worth of American energy products over the next three years.

The deal, announced jointly by the White House and European Commission over the weekend, represents a major expansion of transatlantic energy trade and includes liquefied natural gas (LNG), crude oil, and nuclear fuel.

That pledge translates to roughly $250 billion annually, nearly four times the EU’s current yearly purchases of US energy.

While officials framed the agreement as a commitment to deepen cooperation on energy security and economic ties, the market reaction was immediate and pronounced.

Shares of key US LNG exporters surged on Monday, with Cheniere Energy, NextDecade, and Venture Global all climbing between 3.5% and 7% in early trading. Uranium-focused Energy Fuels also gained sharply amid speculation that nuclear fuel shipments could rise under the new arrangement.

Market reaction

The announcement sparked a rally across the energy sector. The S&P 500 energy index rose nearly 1% in response to the deal, while global oil prices climbed more than 2% on expectations of heightened demand.

Investors saw the EU’s energy pledge as a signal of long-term export growth for American producers, particularly in LNG, where the US has emerged as the world’s top supplier.

Cheniere Energy, the largest US LNG exporter, led the gains among large-cap names, while smaller and mid-cap firms with export capacity or nuclear fuel exposure also rose.

Analysts noted the market was responding not just to the size of the deal but to the perception of stable, long-term government-backed demand out of Europe — something that could support capital investments in infrastructure and supply chain expansion.

Current trade flows

The EU’s $750 billion pledge marks a significant increase from existing trade levels. In 2024, the EU imported roughly $64.6 billion in fossil fuels and coal from the US, including LNG, crude oil, and metallurgical coal. For comparison, total US exports of those commodities to all global markets totaled about $165.8 billion last year.

Meeting the $250 billion-per-year target would require the EU to quadruple its US energy imports, a pace many experts consider infeasible. Infrastructure bottlenecks on both sides of the Atlantic, long-term contracts with non-US suppliers, and Europe’s decarbonisation targets all present challenges. Still, the scale of the commitment underscores how central energy trade has become to the transatlantic economic and security relationship.

Trade deal framework

The energy commitment was part of a broader trade agreement that also included changes to tariffs and investment pledges. Under the deal, the US will impose a 15% tariff on most EU imports, lower than the 30% initially proposed, while exempting certain high-tech and pharmaceutical goods. Steel and aluminum imports from the EU will remain subject to a 50% tariff.

In return, the EU has agreed to invest $600 billion in the United States by 2028, with a significant share expected to go toward clean energy, critical minerals, and advanced manufacturing. The EU also committed to purchasing more US-made military equipment, further deepening industrial ties.

European Commission President Ursula von der Leyen called the agreement “a step forward for Europe’s energy security and a vote of confidence in the US-EU alliance.” President Biden said the deal would “strengthen supply chains, support good jobs, and ensure the transatlantic economy is built to last.”

While the feasibility of the energy targets remains in question, US energy producers are already reaping the benefits of investor optimism.

For now, the political alignment and sheer scale of the EU’s stated commitment are enough to push energy stocks higher — and shift the center of gravity in global energy trade toward the US.