Oil surges on Iran strikes near Hormuz — ride the energy rally with big oil stocks
The U.S. just carried out fresh airstrikes on an Iranian military site near the Strait of Hormuz, a critical oil shipping route. Oil prices surged nearly 3%, pushing Brent crude toward $97 a barrel, with no ceasefire deal in sight.
Idea
When military conflicts threaten the Strait of Hormuz — through which roughly a fifth of the world's oil flows — energy stocks tend to rally hard and keep rallying as long as the threat persists. Brent crude is already nearing $97, and with no diplomatic breakthrough in sight, prices could climb further. Big oil producers like Chevron and Exxon stand to earn significantly more per barrel, which flows straight to their bottom line and eventually their stock prices. The 2.9% jump in oil today is the kind of catalyst that can kick off a multi-week run in energy names.