Oil keeps climbing as US-Iran clashes threaten peace — ride the energy rally
Escalating military clashes between the US and Iran are putting a fragile peace deal at risk. Because the conflict threatens oil shipments from the Middle East, the price of oil is rising, taking oil company stocks with it.
Idea
Oil has been climbing for three straight days as the US and Iran continue to exchange strikes, which directly threatens a major global shipping route for crude oil. This kind of sudden geopolitical tension tends to push energy stocks higher as investors expect lower supply and higher fuel prices. Major oil companies like ExxonMobil and Chevron usually see their shares rally when crude prices spike unexpectedly. As long as the conflict continues to cloud the outlook for a peace deal, this momentum should carry energy stocks higher.