Middle East tensions push oil higher — ride the energy rally
Rising tensions between the US and Iran are pushing oil prices up for the third day in a row. At the same time, a new Federal Reserve report showed inflation is heating up, largely driven by those higher energy costs.
Idea
Oil prices have been steadily climbing as clashes between the US and Iran make investors worry about a disruption to global oil supplies. This geopolitical tension is directly translating into higher energy costs across the economy, which the Federal Reserve just confirmed in their latest report on inflation. When energy prices spike like this due to overseas conflicts, major oil companies tend to see their stock prices follow suit. Buying a basket of oil-related stocks or an oil fund allows you to potentially profit if these tensions and higher prices persist.