Middle East chaos chokes off oil supply — load up on energy stocks
The U.S. military just struck Iran and blocked its oil sales, causing a massive disruption to global shipping through the Strait of Hormuz. With tankers afraid to move and inflation fears spiking in Europe, oil prices are poised to keep climbing.
Idea
The U.S. has directly struck over 80 sites in Iran and revoked oil sales waivers, fundamentally shifting the geopolitical landscape. News that tankers are barely moving through the critical Strait of Hormuz indicates a real, physical constraint on global oil supply. When you combine this supply shock with the news that German bond yields just hit 3% on renewed inflation fears, the market is signaling higher energy prices ahead. We want to own oil producers and energy ETFs to capture this momentum.
What happened since
| Symbol | Dir | T+1 | T+5 | T+20 |
|---|---|---|---|---|
| USO | LONG | -2.85% ✗ | +4.97% ✓ | — |
| XLE | LONG | -1.40% ✗ | +2.05% ✓ | — |
| XOM | LONG | -2.60% ✗ | +2.39% ✓ | — |
Price change since publication · updated Jul 15