Iran strikes reignite oil-supply fears — energy stocks are primed to rally
The U.S. just carried out fresh military strikes on Iran near the Strait of Hormuz — a narrow waterway that about a fifth of the world's oil passes through. Oil prices immediately jumped as traders worry the conflict could disrupt global oil shipments.
Idea
When military conflict flares up near the Strait of Hormuz, oil prices spike because roughly 20% of the world's petroleum flows through there. This is the second round of U.S. strikes in three days, and the market had been pricing in a peace deal — so the surprise factor is big. Oil companies like Exxon and Chevron directly profit from higher crude prices, and the energy sector ETF (XLE) gives you broad exposure without single-stock risk. History shows these geopolitical oil rallies can last weeks if the conflict doesn't resolve quickly, and there's no sign of a ceasefire yet.