Iran just mined the world's busiest oil chokepoint — buy the oil majors
Iran has mined large sections of the Strait of Hormuz, the narrow waterway that roughly one-fifth of the world's oil passes through. The blockade has lasted over three months with no peace deal in sight, and experts are warning that prolonged conflict will keep oil supplies tight.
Idea
The Strait of Hormuz has been effectively blocked for over three months, and the Secretary of State just confirmed Iran has mined large segments of it. This is the chokepoint for roughly 20% of global oil supply. Energy experts are now saying the conflict looks prolonged, which means supply fears aren't going away soon. Oil import-dependent countries like Indonesia are already seeing their markets and currencies crack under the pressure. Major U.S. oil producers like ExxonMobil and Chevron stand to benefit directly from sustained higher oil prices. With momentum building and no diplomatic breakthrough in sight, the trend in energy stocks has legs.