Oil surges after U.S. strikes near Strait of Hormuz — load up on Exxon and Chevron
The U.S. just carried out fresh airstrikes on Iranian military targets near the Strait of Hormuz, one of the world's most important oil shipping routes. Oil prices immediately surged toward $97 a barrel, and there's no sign of a peace deal anytime soon.
Idea
Every time conflict flares near the Strait of Hormuz, oil prices spike because roughly 20% of the world's oil passes through there. Brent crude is already approaching $97 a barrel, and with the U.S. striking Iranian targets for the second time this week, traders are pricing in real disruption risk. Major oil producers like ExxonMobil and Chevron tend to rally hard when crude jumps because their profit margins widen directly with the price of oil. As long as peace talks remain stalled and military action continues, energy stocks should keep climbing. The dual tailwinds of rising oil prices and already-hot inflation give this trade a strong floor.