Iran vows to shut critical oil shipping lane — load up on energy stocks as crude surges
Iran has halted peace talks with the US and is threatening to completely shut down the Strait of Hormuz, a narrow waterway that roughly one-fifth of the world's oil passes through every day. Oil industry experts now believe supply disruptions could drag on through the end of the year, even if the strait reopens soon.
Idea
The Strait of Hormuz is the world's most important oil chokepoint. When a country vows to block it and peace talks collapse, crude prices tend to spike — and energy company profits surge along with them. Analysts are already saying this disruption could last through December, which means this isn't a one-day headline shock. US oil giants like ExxonMobil and Chevron are the simplest way to play it because they pump and sell oil at these higher prices, and the XLE ETF lets you spread the bet across the whole sector rather than picking one stock.