Iran conflict chokes the world's most important oil route — ride the energy rally with Chevron and Exxon
Fresh fighting between the U.S. and Iran is pushing oil prices higher. The Strait of Hormuz — a narrow waterway that handles a huge share of the world's oil shipments — has been effectively blocked for over three months, and experts say a prolonged conflict will keep supplies tight.
Idea
The Strait of Hormuz has been blocked for three months and fresh attacks are ending any near-term hope of a peace deal. Oil supply is being squeezed at exactly the moment demand stays strong heading into summer. Major oil companies like Chevron and Exxon stand to benefit directly from higher crude prices because their profit margins widen as the commodity they sell gets more expensive. With energy stocks still not fully pricing in a prolonged blockade, there's room for a catch-up rally in the big names.