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Iran mines key oil shipping route — energy stocks look ready to surge

The U.S. Secretary of State announced that Iran has mined large parts of the Strait of Hormuz, a narrow channel through which about a fifth of the world's oil passes every day.

Idea

Mining the Strait of Hormuz is a major escalation that threatens global oil shipments and raises the risk of supply disruptions. When news like this hits, oil prices often jump, and so do the stocks of major oil producers. With geopolitical tensions rising, buying shares of large oil companies like ExxonMobil and Chevron is a way to position for higher energy prices ahead.

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CVXXOM1D#geopolitics#oil#macro

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