Iran conflict pushes oil higher, inflation heats up — ride the energy rally
Stocks snapped a long winning streak as the market digests two major threats: a raging war between the U.S. and Iran that is driving up oil prices, and a fresh government report showing inflation is heating back up.
Idea
Oil prices have been climbing for three straight days as the conflict between the U.S. and Iran worsens, with peace talks completely stalling out. This geopolitical tension is threatening a critical shipping route and causing energy costs to surge. Consequently, the latest Federal Reserve report highlighted that inflation is picking up again, largely driven by these rising energy costs. As long as the conflict keeps energy prices elevated, oil-related investments are likely to continue their upward momentum, making this a strong opportunity to ride the energy rally.