Iran ceasefire won't kill high oil prices — load up on energy stocks on the next dip
Even though the U.S. and Iran may be nearing a ceasefire, analysts say cheap oil is gone for good. Meanwhile, inflation just came in hotter than expected, which tends to push energy prices even higher.
Idea
Most people assume a ceasefire between the U.S. and Iran would crash oil prices, but that's not what's happening this time. Analysts are saying the era of $60 oil may be permanently over due to years of underinvestment in new drilling and strong global demand. On top of that, the Fed's key inflation number just came in hot for April, meaning the cost of everything — including energy — keeps climbing. That combination of sticky-high inflation and structurally tight oil supply is a sweet spot for major oil companies like Exxon and Chevron, which print cash when prices stay elevated. Energy stocks have lagged the tech rally, so there's room to catch up.