Strait of Hormuz shut, Exxon warns of $150 oil — load up on energy stocks
The Strait of Hormuz — the narrow waterway that carries roughly a fifth of the world's oil — has been shut down since the Iran war broke out in February. Now Exxon is warning that global oil stockpiles will fall to dangerous lows within weeks, potentially sending crude prices to $150 or higher.
Idea
The Iran war has forced the world's most important oil shipping lane closed since February, and the pinch is about to get much worse. Exxon's own executives are publicly warning that crude inventories will soon hit all-time lows, which could push Brent oil to $150–160 a barrel. When a major oil company itself flags that kind of price spike, energy stocks tend to rally hard as investors re-price future profits. The XLE energy ETF and giants like Exxon and Chevron are the simplest way to play this — they benefit directly from higher oil prices and pay solid dividends while you wait.