The utilities sector, as measured by the XLU ETF, fell 1.28% in the current session amid a wider market downturn. Surging oil prices, driven by heightened geopolitical tensions in the Middle East, have intensified investor concerns about inflation. This anxiety comes just ahead of key Producer Price Index (PPI) and Consumer Price Index (CPI) reports due later this week. As a result, Treasury yields have risen, making the dividend yields of utility stocks less attractive in comparison and increasing borrowing costs for these capital-intensive companies.