Oil surges on fresh Iran strikes — ride the energy rally with Exxon and Chevron
The U.S. just launched fresh military strikes in Iran, and oil prices are jumping because traders worry the fighting could block cargo ships from passing through the Strait of Hormuz — a chokepoint that roughly one-fifth of the world's oil flows through every day.
Idea
When military conflict threatens the Strait of Hormuz, oil prices tend to spike fast — and that money flows straight into the biggest oil producers. Exxon and Chevron are the two largest U.S. oil companies and typically move in the same direction as crude, only amplified. This isn't the first Hormuz scare of the year, so traders are conditioned to bid energy stocks quickly. With oil already jumping on the news, the 10-day breakout level gives us confirmation that the move has real momentum behind it, not just a one-day knee-jerk reaction. A tight trailing stop protects you if a surprise peace deal reverses the whole trade.