Iran clashes drive oil prices higher again — ride the energy rally on Chevron and Exxon
Fighting between the US and Iran is flaring up again, crushing hopes for a peace deal and threatening oil shipments. At the same time, the government's latest economic report shows inflation is heating up, largely because of these surging energy costs.
Idea
When a major oil-producing region gets caught in a war with no clear end in sight, the price of oil tends to keep climbing as supplies get tight. This specific conflict is already driving gas and energy prices up to the point where it's pushing broader inflation higher across the economy. Because oil companies effectively get to charge more for their product without having to do extra work, their profits are poised to surge. Buying shares of major oil producers is a straightforward way to cash in on this chain reaction while the geopolitical uncertainty drags on.