Iran fighting flares, Strait of Hormuz blocked — ride the oil squeeze with energy stocks and crude ETFs
Fresh fighting between the US and Iran is pushing oil prices higher. The Strait of Hormuz — the narrow waterway that roughly a fifth of the world's oil passes through — has been effectively blocked for over three months, and energy experts say a prolonged conflict will keep supplies tight.
Idea
Oil prices are spiking because new Iran attacks have killed off hopes for a ceasefire, and the Strait of Hormuz has been blocked for three months. That waterway handles roughly 20% of global oil shipments, so any extended disruption physically chokes supply. Energy analysts are now warning that a prolonged war will keep inventories tight for months. Oil majors like Exxon and Chevron tend to climb when crude sustains above its recent range because their profits are directly tied to the price of each barrel. An ETF like USO gives you a cleaner way to ride the commodity itself rather than picking a single company.