Oil prices likely stuck above $60 for good after Iran strikes — accumulate energy stocks on dips
The US struck Iranian military targets near the Strait of Hormuz for the second time this week, sending oil prices higher. Even though peace talks are reportedly progressing, analysts say oil may never return to the $60 range — the geopolitical damage is done.
Idea
Oil prices have spiked because the US military struck Iranian targets twice this week near one of the world's most important shipping chokepoints. Even if a ceasefire is announced soon, analysts argue the era of cheap oil is over — supply chains have been disrupted and the risk premium is now baked in. That means energy companies like Chevron and Exxon stand to keep raking in cash at higher prices for longer. The trade is to accumulate major oil stocks on any dip, because the floor under oil appears to have moved permanently higher.