Strait of Hormuz is shut, oil shock is real — load up on energy stocks while crude stays elevated
The Strait of Hormuz — the world's most important oil shipping route — has been shut down since the Iran war began in February, causing a severe global energy shock. Even if the conflict winds down, analysts warn that cheap oil may be gone for good, and inflation is already spiking in Europe as a result.
Idea
The Strait of Hormuz handles roughly 20% of the world's oil, and it's been shut since February. That's not a blip — it's a structural supply shock. Even if a ceasefire is reached, the damage to supply chains and infrastructure means oil prices may stay elevated permanently, ending the era of cheap energy. European inflation is already re-accelerating because of it, which means energy companies are collecting much higher prices for their product. When oil stays expensive for a long time, companies like Exxon and Chevron print cash — and their stock prices tend to follow.