Hormuz has been blocked for months and Iran just mined it — load up on big oil names like Exxon and Chevron
The Strait of Hormuz — the narrow waterway that most Middle Eastern oil passes through — has been blocked for over three months. Iran has now mined large sections of it, and peace talks are going nowhere, meaning the oil squeeze could get worse.
Idea
Roughly a fifth of the world's oil flows through the Strait of Hormuz, and it's been blocked for over three months with no resolution in sight. Iran has mined large sections of it, and energy experts are now warning that a prolonged conflict will keep tightening supply. That combination — stuck supply and stubborn demand — is exactly what drove oil stocks to multi-year highs in past crises. Big integrated producers like Exxon and Chevron, as well as the broad energy ETF (XLE), stand to benefit the most as prices stay elevated.