Oil climbing for three days straight on Middle East tension — ride the energy wave
Oil prices are climbing for the third day in a row as military clashes between the US and Iran make investors worry about future energy shortages. This ongoing conflict is also pushing up broader inflation, which was already highlighted in the latest government economic reports.
Idea
Rising global conflicts are directly disrupting the outlook for oil supplies, pushing crude prices steadily higher. At the same time, the latest Federal Reserve report confirmed that inflation is picking up across the board, largely driven by these rising energy costs. When oil prices rise consistently over several days, major energy companies typically see their profit margins expand significantly. Buying shares of the largest oil producers is a straightforward way to position for continued tension in the Middle East and higher prices at the pump.