Hormuz blockade dragging on with no peace deal — load up on big oil
The Strait of Hormuz — the shipping lane for about 20% of the world's oil — has been effectively blocked for over three months. Iran has now mined large sections of it, and with peace talks stalled, energy experts say oil supply will keep getting squeezed.
Idea
Most of the world's oil from the Persian Gulf has to pass through the Strait of Hormuz — and it's been blocked for more than three months. Iran has now mined large sections of the waterway, and the U.S. Secretary of State confirmed the situation is getting worse, not better. An energy expert on Bloomberg warned that a prolonged conflict will keep tightening supply. When a massive chunk of global oil can't reach buyers and there's no resolution in sight, prices tend to keep climbing — and the biggest producers like ExxonMobil and Chevron reap the benefit of every extra dollar per barrel.