Oil spikes on fresh Iran strikes — ride the energy rally before it runs
Oil prices just spiked after new U.S. military strikes in Iran reignited fears that cargo ships won't be able to pass through the Strait of Hormuz — a narrow waterway that handles roughly one-fifth of the world's oil supply.
Idea
Oil had been sliding — down more than 5% in a single day — on hopes that the U.S. and Iran were close to a peace deal. That deal now looks distant, and fresh American strikes overnight flipped the market from relief to panic. The Strait of Hormuz is the chokepoint for global oil; any real disruption there sends prices surging. Energy stocks like ExxonMobil and Chevron tend to move in the same direction as oil but with more staying power because their profits get a direct boost. After a reversal this sharp, traders often keep buying for several days as they re-price the risk.