Strait of Hormuz blocked for months, no peace deal coming — load up on big oil stocks as supply stays tight
The Strait of Hormuz — the narrow waterway that roughly one-fifth of the world's oil passes through — has been effectively blocked for over three months. Iran has now mined large sections of it, and peace talks are going nowhere, which means oil supply could stay tight for a while.
Idea
The Strait of Hormuz is the world's most important oil chokepoint, and it's been blocked for over three months with no resolution in sight. Iran has mined large parts of it, and the U.S. Secretary of State has called those actions illegal — a sign this standoff isn't ending soon. Energy experts are now warning that a prolonged conflict will keep squeezing oil supply, which tends to push oil prices — and the stocks of big oil producers — higher. Companies like ExxonMobil and Chevron stand to benefit directly from every extra dollar added to the price of a barrel.