Middle East tensions push oil higher — ride the energy rally with Exxon and Chevron
Fighting between the U.S. and Iran is getting worse, and peace talks have stalled. Because the conflict is right near the world's biggest oil shipping routes, the price of oil has been jumping higher.
Idea
Oil prices are climbing as clashes between the U.S. and Iran threaten a delicate peace deal and disrupt shipping in the Middle East. When geopolitical tensions like this flare up in major oil-producing regions, energy stocks tend to get a boost as traders anticipate supply shortages. Because oil has now risen for three days in a row, the companies that drill and sell it—like Exxon and Chevron—are positioned to see higher profits. Buying a broad energy fund or the oil giants themselves is a straightforward way to capitalize on this escalating situation.