Iran strikes reignite oil fears — ride the momentum on Exxon and Chevron
The U.S. just launched another round of military strikes on Iran, and oil prices are jumping because traders worry the conflict could block ships from passing through the Strait of Hormuz — a chokepoint for roughly one-fifth of the world's oil supply.
Idea
Every time the U.S.-Iran conflict escalates, oil prices spike because the Strait of Hormuz is the world's most important oil shipping lane. This is the second strike in three days, and a peace deal looks less likely than it did a week ago. Oil majors like ExxonMobil and Chevron tend to rally hard in the first few days after these geopolitical shocks, and they haven't fully priced in the risk of a prolonged disruption yet. The momentum is strong enough that even a small position could capture a meaningful move higher.