Middle East clashes keep pushing oil higher — ride the energy rally on Exxon and Chevron
Rising tensions in the Middle East are pushing oil prices up for the third day in a row. At the same time, a new government report shows inflation is heating back up, largely because of these higher energy costs.
Idea
When military conflicts threaten a major oil shipping route like the Strait of Hormuz, oil prices tend to spike as supply fears grow. This morning, oil climbed for a third straight day as clashes between the US and Iran ruined hopes for a peace deal. At the same time, the Fed reported that inflation is climbing across the country, specifically pointing to energy costs. This creates a perfect environment for oil companies to see expanded profit margins. A trade focused on major oil producers allows you to benefit if prices keep rising, while remaining relatively protected if the conflict cools off.