Middle East clashes push oil higher — load up on major energy stocks as a geopolitical shield
Escalating military clashes between the US and Iran are pushing oil prices higher and threatening a major peace deal. At the same time, a new government report shows inflation is heating up, largely because of these rising energy costs.
Idea
Military conflicts in the Middle East routinely cause oil and gas prices to spike because markets fear disruptions to global supply. With US and Iran tensions specifically flaring up, the energy sector is seeing a strong, immediate bid. Furthermore, the Federal Reserve just reported that inflation is ticking higher, which makes energy stocks even more attractive as they tend to act as a shield against rising prices. Buying shares of the biggest US oil producers offers a direct way to profit from this geopolitical storm and the resulting energy cost surge.