Iran mines the Strait of Hormuz, oil supply squeezed — load up on oil stocks
Iran has mined large sections of the Strait of Hormuz — the narrow waterway through which roughly one-fifth of the world's oil passes — and the channel has been effectively blocked for over three months with no peace deal in sight.
Idea
The Strait of Hormuz is the world's most critical oil chokepoint, and it's now been mined and effectively blocked for over three months. Secretary of State Rubio confirmed the mining publicly, and energy analysts at SVB Energy International say a prolonged conflict will keep tightening global supply. Oil prices are already rising on the news, and oil producers like ExxonMobil and Chevron collect higher revenue directly when crude climbs. With peace talks stalled and fresh fighting reported, the supply squeeze is unlikely to ease soon — which means oil stocks could keep grinding higher.