Oil posting worst month in six years on Iran deal hopes — short energy if ceasefire lands
Oil prices just had their worst month in six years. President Trump says the U.S. is on the verge of a ceasefire deal with Iran, which would reopen critical shipping routes and unleash more oil supply onto the world market.
Idea
Brent crude just posted its biggest monthly drop in six years, and the selling may not be over. President Trump is meeting in the Situation Room to finalize a ceasefire deal with Iran. If an agreement is reached and the Strait of Hormuz — the world's most important oil shipping lane — reopens, a massive amount of oil supply would flood back into the market. Oil prices have been propped up by war-related disruption; remove that fear, and prices could slide sharply. The energy sector ETF (XLE) would also feel the pressure as investors flee oil-linked stocks.