Oil keeps climbing as Middle East tensions flare — ride the energy rally
Fighting between the US and Iran is escalating, threatening a major peace deal and driving oil prices up for three days in a row. At the same time, a new government report shows inflation is heating back up, largely because of these rising energy costs.
Idea
Oil prices are rallying as clashes between the US and Iran make investors worry about a prolonged conflict in the Middle East. When shipping routes like the Strait of Hormuz are at risk, oil tends to keep climbing because supplies could be squeezed. Additionally, a new Federal Reserve report confirmed that overall inflation is rising, driven specifically by energy costs. This combination of global tension and rising prices creates a strong tailwind for oil companies, making them attractive for a continued upward move.