Iran just mined the world's busiest oil chokepoint — buy energy and defense before prices spike
The U.S. Secretary of State says Iran has placed mines in the Strait of Hormuz, a narrow waterway that roughly one-fifth of the world's oil passes through every day. That's a serious threat to global oil supplies.
Idea
The Strait of Hormuz is the world's most important oil chokepoint — about 20% of global oil flows through it. If Iran has mined it, shipping companies will reroute or halt trips, which squeezes oil supply and pushes prices up. Energy stocks like ExxonMobil (XOM) tend to rally hard when oil prices spike. Defense stocks like Lockheed Martin (LMT) also benefit because geopolitical tension drives government defense spending. This situation could escalate further, meaning the trade has room to run. The simplest way to play it is through USO, an oil fund, or individual energy and defense names.