Middle East clashes keep oil supply on edge — ride the energy rally
Fighting between the U.S. and Iran is escalating again, delaying a peace agreement and keeping the world's main oil shipping route blocked. At the same time, oil-producing countries like Kuwait are scrambling to find new ways to store and deliver oil globally.
Idea
Oil has been rising for three days straight because peace talks between the U.S. and Iran are falling apart, which keeps a major global oil shipping lane disrupted. Since the threat to oil supplies is getting worse, this trend likely has room to run as buyers panic to secure inventory. Major oil companies like Exxon and Chevron usually see their stock prices climb alongside the price of crude oil. Furthermore, Kuwait trying to build new storage facilities far from the conflict confirms that the industry expects prolonged supply issues.