U.S. stocks were trading solidly higher on Wednesday, led by sharp rallies in energy, financials and industrials sectors.

Energy stocks were boosted by President Donald Trump’s decision a day earlier to pull the U.S. out of the Iran nuclear deal and resume sanctions against the oil-producing nation.

What are markets doing?

The S&P 500 SPX, +1.01%^[1] gained 26 points to 2,698, a gain of 1%, with nine of the 11 main sectors trading higher.

Energy shares jumped 2.4%, by far the biggest outperformer among the S&P 500 sectors. Financials, material, industrials and technology shares rose more than 1%. Meanwhile, telecoms and utilities were the only laggards, down about 1%.

The Nasdaq Composite Index COMP, +1.01%^[2] added 77 points, or 1%, to 7,344.

The Dow Jones Industrial Average DJIA, +0.76%^[3] rose 221 points, or 0.9%, to 24,580, with 24 of the 30 blue-chip companies trading higher.

What is driving the market?

A rally in oil prices^[4] helped lift U.S.-listed energy companies in premarket action, which pushed stock-index futures higher. West Texas Intermediate oil CLM8, +3.01%^[5] jumped 3.2% while Brent LCON8, +3.14%^[6]  was up 3%. Trump said the U.S. intends to impose sanctions on Iran, curbing the country’s oil exports and tightening global oil supply.

Also affecting oil markets was data from the Energy Information Administration, which showed that crude-oil stockpiles fell more than expected in the latest week^[7].

Read: Why oil prices didn’t rally Tuesday after Trump announced ‘powerful’ Iran sanctions ^[8]

The jump in oil coincided with a rise in Treasury yields, as rising energy prices can lift inflation expectations, which are bearish for bonds that have a fixed value. The yield on 10-year U.S. notes TMUBMUSD10Y, +0.85%^[9]  briefly rose back above 3%^[10]. The dollar DXY, -0.04%^[11] ...