Energy stocks were lower Monday afternoon, with the NYSE Energy Sector Index decreasing 0.5% and the State Street Energy Select Sector SPDR ETF (XLE) shedding 0.7%.

The Philadelphia Oil Service Sector Index was falling 3.9%, and the Dow Jones US Utilities Index was down 1.2%.

Oil prices rose Monday after Iran claimed to have destroyed an advanced US drone over the Strait of Hormuz. Oil prices have jumped more than 20% so far this month after notching gains in both August and July, fueling global inflation concerns. The Islamic Revolutionary Guard Corps said it destroyed an advanced MQ-1 drone over the Strait of Hormuz, a key crude and energy chokepoint, CNBC reported.

Front-month West Texas Intermediate crude oil rose 1.6% to $101.62 a barrel, and the global benchmark Brent crude contract added 1.4% to $106.10 a barrel. Henry Hub natural gas futures climbed up 1.9% to $2.89 per 1 million BTU.

In corporate news, Chevron (CVX) is considering expanding its global gas portfolio to the Mediterranean and Argentina to meet growing demand amid the crisis in the Middle East, Reuters reported, citing the President of Global Gas, Freeman Shaheen. Chevron shares were down 0.2%.