Oil surges on fresh Iran strikes — ride the energy rally with Exxon and Chevron
Fresh U.S. military strikes on Iran have reignited fears that oil shipments through the Strait of Hormuz could be disrupted, sending crude prices sharply higher overnight.
Idea
The Strait of Hormuz is a chokepoint for roughly 20% of the world's oil supply. Every time conflict in the region flares up, oil prices spike — and the big integrated producers like ExxonMobil and Chevron tend to rally hard in response. This round of strikes is particularly notable because markets had started pricing in a peace deal, so the escalation catches a lot of traders offside. With bond yields also rising on inflation fears tied to higher energy costs, the momentum behind oil stocks looks sustainable for at least a couple of weeks unless a surprise ceasefire is announced.