Oil keeps climbing as Iran tensions flare — ride the energy rally
Oil prices are climbing for the third day in a row as recent military clashes between the US and Iran make a peace deal look unlikely. Because pipelines can only move so much oil, the ongoing threat to major shipping routes is keeping the market tight.
Idea
The recent fighting between the US and Iran is directly threatening a major global oil shipping route. News reports indicate that alternative pipelines can only do so much to bypass the problem, meaning oil prices could stay high or go even higher if the conflict drags on. Oil stocks and oil-tracking funds have been steadily climbing over the last few days as a result. Because there is no clear resolution in sight, this upward pressure on energy prices is likely to continue, making oil-related companies an attractive bet right now.