Oil whipsaws higher as U.S. strikes Iran again — ride the energy rebound
Just when markets thought the U.S.-Iran war was winding down and oil prices were falling, fresh American airstrikes hit an Iranian site near the Strait of Hormuz. Oil prices immediately reversed higher because the strait is a critical chokepoint for global oil shipments.
Idea
Oil prices had dropped roughly 5% on Wednesday as investors bet on a peace deal, but overnight U.S. military strikes near the Strait of Hormuz flipped the script. The Strait of Hormuz handles roughly one-fifth of the world's oil, so any threat of disruption immediately pushes prices up. With the conflict escalating again after markets had priced in peace, there's room for oil and oil-company stocks to keep climbing as traders re-price the risk. The seesaw between peace hopes and military action is creating sharp, tradable swings in energy.