Oil keeps climbing as Iran peace talks stall — ride the energy rally with Exxon and Chevron
The critical Strait of Hormuz oil shipping lane has been blocked for over three months due to the US-Iran conflict. Recent military clashes are derailing peace talks, pushing oil prices up for the third day in a row.
Idea
A massive portion of the world's oil is trapped behind a blocked Strait of Hormuz, and fresh fighting is ruining chances of a peace deal to reopen it. This means the global oil supply will likely stay very tight, keeping prices well supported. Oil prices have been climbing for three straight days as the reality of this stalemate sets in. Because energy companies make more money when oil prices stay high, their stocks are likely to follow the price of oil upward. Buying a basket of major oil producers or an oil fund captures this momentum.