Iran deal could reopen critical oil route and crash prices further — bet against oil
Oil prices just posted their worst month in six years as President Trump signals a final decision on an Iran deal is imminent. If the deal goes through, it could reopen the Strait of Hormuz — the world's most important oil shipping route — and unleash a flood of supply.
Idea
Brent crude just suffered its worst monthly drop in six years, and the selling could accelerate. The Strait of Hormuz — responsible for roughly 20% of the world's daily oil shipments — has been shut since the Iran conflict began in February. President Trump now says a final decision on an Iran deal is coming, and markets are pricing in a resolution. If a deal is struck and the strait reopens, a massive amount of oil supply hits the market at once. Oil stocks in the XLE energy fund would also feel the pressure as their profit margins on existing production shrink.