Iran threatens critical oil route — load up on energy stocks before crude surges
Iran just walked away from peace talks with the U.S. and is threatening to shut down the Strait of Hormuz — a narrow waterway that roughly one-fifth of the world's oil passes through every day. Oil prices are jumping as a result.
Idea
The Strait of Hormuz handles about 20% of global oil shipments. Any real disruption — or even the credible threat of one — has historically sent crude prices up sharply in a matter of days. When oil spikes, the biggest energy producers like Exxon and Chevron tend to rally hard because their profits are directly tied to the price of crude. The last time tensions flared near this waterway in 2019, energy stocks jumped 8–12% over the following two weeks. This situation could escalate further, giving the trade room to run.