Strait of Hormuz blocked for months, oil supply tightening — ride the energy rally with Exxon and Chevron
The Strait of Hormuz — the world's most important oil shipping lane — has been effectively blocked for over three months. The Secretary of State confirmed Iran has mined large sections of it, and peace talks are going nowhere. That's squeezing global oil supply and pushing prices higher.
Idea
A critical chokepoint for roughly 20% of the world's daily oil supply has been shut down for three months and counting, with the US government now confirming Iran has mined the waterway. Energy experts are warning that a prolonged conflict will keep supplies tight. Meanwhile the OECD just cut its global growth forecast partly because of the Middle East conflict — but oil prices are rising anyway because supply is being squeezed harder than demand is falling. That's a textbook setup where big oil producers like Exxon and Chevron stand to make more money per barrel, even in a slowing economy. The trend in energy stocks has been building for weeks and fresh headlines are adding fuel to the move.