Strait of Hormuz still shut, cheap oil may be gone for good — ride energy stocks higher
The Strait of Hormuz — the world's most important oil shipping route — has been shut since the Iran war broke out in February. Even with ceasefire talks underway, experts say oil prices won't go back to $60 because the damage to global supply is lasting.
Idea
The closure of the Strait of Hormuz has choked off the world's busiest oil shipping lane, creating a real energy squeeze. Normally when geopolitical conflicts ease, oil prices crash — but this time analysts believe supply disruptions are so deep that prices will stay high even after a ceasefire. That means oil companies like Exxon and Chevron could keep raking in oversized profits for quarters to come, and their stock prices haven't fully caught up to this new reality. An energy-sector fund like XLE gives you broad exposure while the story plays out.