Oil keeps climbing as Middle East fighting restarts — ride the energy rally
Fighting between the U.S. and Iran is intensifying, causing oil prices to rise for three straight days. At the same time, a new Federal Reserve report warns that the conflict is pushing up inflation across the country.
Idea
The collapse of the ceasefire is directly threatening a major global oil shipping route, which is forcing energy prices upward. The Federal Reserve also noted that this conflict is a primary driver of rising inflation, meaning higher prices at the pump and across the economy are being officially recognized. When a major commodity like oil gets this kind of dual threat from both actual supply disruptions and rising inflation fears, the companies that produce that energy tend to see their stock prices climb. Buying into major oil producers or energy funds allows you to profit directly from this ongoing geopolitical tension.