Middle East tensions push oil higher for third day — ride the momentum on energy stocks
Escalating clashes between the US and Iran are threatening a fragile peace deal and blocking a major global shipping route for oil. At the same time, the government's latest report shows inflation is heating back up, largely because energy costs are rising.
Idea
Oil prices have been climbing for three straight days as attacks between the US and Iran make investors nervous about future oil supplies. When key shipping routes are threatened, oil companies usually see their stock prices jump alongside the price of crude oil. With the government officially confirming that higher energy costs are driving inflation up, this trend has strong fundamental backing. Buying a broad oil fund like USO or major producers like Chevron is a straightforward way to profit if these tensions continue.