Oil shock isn't going away even if the Iran war ends — accumulate energy stocks
The Iran war and closure of the Strait of Hormuz — the world's most important oil shipping lane — have triggered a massive energy shock. Even if a ceasefire holds, analysts warn oil prices may never return to their old lows because supply chains have been permanently disrupted.
Idea
The Strait of Hormuz closure has choked off the world's busiest oil shipping route, and the damage to supply routes won't instantly reverse even if peace breaks out. MarketWatch reports the era of cheap oil may be permanently over. That means oil companies are likely to keep raking in higher profits for quarters to come. Energy stocks like Chevron and ConocoPhillips still trade well below the peaks they hit during past oil booms, giving room to run if crude stays elevated.