Oil keeps climbing as Middle East tensions flare — ride the energy rally on Exxon and Chevron
Military clashes between the US and Iran are escalating, threatening a major peace deal and blocking a critical global oil shipping route. At the same time, a new Federal Reserve report highlights that energy prices are driving up inflation across the country.
Idea
Rising geopolitical tension in the Middle East is disrupting oil supplies and pushing energy prices up. The Federal Reserve also just reported that higher energy costs are directly fueling inflation, which means oil prices have fundamental support right now. Oil has already been climbing for three straight days, and as long as the conflict continues to threaten shipping routes, energy companies and oil funds are likely to keep benefiting. This is a momentum trade driven by real-world events that show no signs of resolving soon.