Middle East clashes keep oil rising — jump into energy stocks for the continued climb
Oil prices are climbing for the third day in a row as recent military clashes between the US and Iran make a peace deal look less likely, threatening a major global shipping route for crude oil.
Idea
Rising geopolitical tension in the Middle East is directly disrupting the outlook for global oil supplies, specifically through the Strait of Hormuz. Because peace talks are stalling, the market is pricing in a 'risk premium,' meaning oil prices could stay elevated or jump higher as long as the conflict persists. Big oil companies like Chevron and ExxonMobil tend to see their shares rally alongside the price of crude. By investing in a broad energy fund or the major oil companies, traders can position themselves to profit if these tensions continue to push fuel prices up.