Oil keeps climbing as Middle East peace deal stalls — ride the momentum on Chevron and energy funds
Fighting between the US and Iran is flaring up again, making it harder to secure a peace deal. Because the conflict threatens a major global oil shipping route, oil prices have been climbing for three days straight.
Idea
Oil is on a three-day winning streak because renewed fighting is delaying a peace agreement that would secure the Strait of Hormuz, a critical global shipping route. As long as the threat to oil tankers remains, the market will price in a higher risk of disrupted supply. Major energy companies like Chevron stand to benefit directly from a prolonged rise in crude prices. Furthermore, Kuwait's announcement that it is looking to expand its global oil storage highlights just how serious the industry believes these shipping disruptions could become. This combination of immediate supply fears and long-term infrastructure planning creates a strong case for a continued rise in oil-related assets.