Iran peace signals crushing oil — ride the airline and travel rally
Hopes for a peace deal between the U.S. and Iran are sending oil prices down sharply. Airlines and travel companies — which pay massive fuel bills — are soaring as a result.
Idea
A potential U.S.-Iran deal would reopen the Strait of Hormuz, a critical oil shipping route, and push crude prices even lower. Fuel is the single biggest expense for airlines, so every dollar drop in oil flows straight to their bottom line. Delta, United, and MGM are already among the top S&P 500 gainers today, and short sellers are caught on the wrong side in record amounts — meaning they may be forced to buy back shares, pushing prices even higher. One strategist thinks the optimism is premature, which actually means there's more room to run if a deal actually gets signed.