Middle East tensions push oil higher for a third day — ride the energy rally
Oil prices are climbing for the third day in a row because of renewed fighting between the US and Iran, which is making investors worry that a peace deal might fall apart.
Idea
When military conflicts threaten major oil shipping routes like the Strait of Hormuz, it restricts the global supply of oil, which historically drives prices up quickly. Because oil has already been rising for three days, this suggests the trend is strong and likely attracting more buying interest. Energy stocks like Chevron and ExxonMobil generally move in the same direction as oil prices but can offer even larger percentage gains during sudden supply shocks. Buying a fund that tracks the energy sector allows you to profit from this geopolitical tension without having to pick a single winning company.