Iran deal could reopen the world's biggest oil chokepoint — bet against crude, back the airlines
Oil prices are suffering their worst month in six years because the U.S. and Iran appear close to a peace deal. If the Strait of Hormuz — the world's most important oil shipping lane — reopens, a flood of oil supply could hit the market and keep prices under pressure.
Idea
Brent crude is wrapping up its worst month in six years, and the selling may not be over. President Trump says a final decision on an Iran deal is imminent, and if it happens, the Strait of Hormuz — which carries roughly 20% of the world's oil — could reopen after months of being shut. That would unlock a huge amount of trapped supply right when the market is already oversupplied. Oil stocks in the XLE energy fund would likely keep dragging. On the flip side, airlines love cheap fuel — the JETS airline ETF tends to rally when oil falls sharply, making it a natural hedge or alternative way to play the trend.