Fresh U.S. strikes in Iran shatter peace hopes — ride the oil snap-back
Oil prices just whipsawed — they crashed over 5% on Wednesday when investors thought a peace deal was near, then snapped higher Thursday after new U.S. military strikes in Iran reignited fears that oil shipments through the Strait of Hormuz could be disrupted.
Idea
Oil just experienced a textbook whipsaw: a 5% crash driven by premature peace optimism followed by an immediate rebound as new military strikes shattered that narrative. The Strait of Hormuz handles roughly 20% of the world's daily oil shipments, so any disruption risk puts a premium on crude. Energy stocks like Chevron and ExxonMobil were sold aggressively on the peace headlines and have ground to make up. If the Iran situation escalates further, the snap-back in oil prices could be sharp and sustained.