Iran threatens to block critical oil route — load up on big oil stocks before prices really spike
Iran has halted peace talks with the U.S. and is threatening to shut down the Strait of Hormuz — a critical passageway for global oil shipments. Industry experts now expect oil supply disruptions to last through the end of the year, which could keep pushing oil prices higher.
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The Strait of Hormuz handles roughly one-fifth of the world's oil supply, and Iran is now threatening to block it entirely after abandoning negotiations. Even if the waterway reopens quickly, OPEC analysts say the supply shock will linger through year-end. Oil prices have already jumped and are holding those gains, which tends to lift the stock prices of major oil producers like ExxonMobil and Chevron. When geopolitical supply fears persist this long, energy stocks often keep climbing for weeks as the market re-prices what oil is really worth.