The energy sector is holding its own with the S&P 500, thanks to surging natural gas stocks. Oil stocks may start to catch up though.

Shares of oil companies were some of the S&P 500's top gainers Tuesday as investors evaluated fresh developments in the conflict between Israel and Iran.

TotalEnergies SE (NYSE:TTE) is one of the 10 most undervalued oil stocks to buy according to analysts. On June 4, TotalEnergies SE (NYSE:TTE) declared that it had signed a deal with Shell Brasil Petróleo Ltda to swap its 20% non-operated stake in the Gato do Mato project for a 3% stake in the offshore oil field Lapa.

NEW YORK (AP) — Some calm is returning to Wall Street, and U.S. stocks are rising on Monday, while oil prices are giving back some of their initial spurts following Israel’s attack on Iranian nuclear and military targets at the end of last week.

Halliburton is the third-largest oilfield services company in the world, so any time oil prices go up, it's a recipe for potential further investment by oil companies in exploration, completion, and production enhancement services.

U.S. crude oil inventories are forecast to have fallen for a fourth week in a row, according to a survey by The Wall Street Journal.

Right now, Chevron ( CVX 0.14%) is one high-yield energy laggard that is worth buying and holding for the long term. The first thing that investors need to understand is that oil prices can rise and fall in often dramatic, and swift, fashion. Even when the moves aren't rapid, they can still be material.

The rally came as oil prices retreated from recent highs amid reports that Iran seeks to de-escalate tensions with Israel.