Middle East tensions keep pushing oil higher — ride the energy rally with Exxon and Chevron
Oil prices are climbing for the third day in a row because recent military clashes between the US and Iran are making investors worried that a peace deal will fall apart.
Idea
Rising military tensions in the Middle East are disrupting the outlook for a fragile ceasefire, directly threatening the flow of oil through major shipping routes. When key shipping channels like the Strait of Hormuz are at risk, uncertainty drives energy prices higher as supplies could be restricted. Because oil has already been trending up for three days, this ongoing situation gives energy stocks a strong tailwind. Buying a broad oil fund like USO or an energy sector fund like XLE is a straightforward way to position for continued price bumps as long as the conflict remains unresolved.