Iran strikes reignite oil panic — ride the energy snapback on USO and the majors
Oil prices just whipped higher after new U.S. military strikes in Iran reignited fears that crude shipments through the Strait of Hormuz — a chokepoint for roughly a fifth of the world's oil — could be disrupted. Kuwait even activated its air defenses against incoming missiles and drones.
Idea
Oil had been sliding as recently as yesterday on hopes that a U.S.–Iran peace deal was close, which lured a lot of traders into betting oil would keep falling. Then overnight the U.S. launched fresh strikes on Iran and Kuwait activated its air defenses — a clear sign the conflict is escalating, not winding down. The Strait of Hormuz handles about 20% of global oil shipments, so any real disruption sends prices sharply higher. With oil snapping back from an oversold slump and the geopolitical risk premium suddenly back in play, energy stocks and oil ETFs look poised for a multi-day rebound as the market reprices the danger.