Oil surges on fresh Iran strikes — ride the energy rally with Exxon and Chevron
The U.S. just carried out fresh military strikes on Iran near the Strait of Hormuz, a critical oil shipping chokepoint. Oil prices jumped as traders worried about supply disruptions, and bond prices fell on fears that higher energy costs will keep inflation sticky.
Idea
Fresh U.S. strikes near the Strait of Hormuz have reignited fears that a fifth of the world's oil supply could be disrupted. Oil prices jumped on the news, and energy stocks like ExxonMobil and Chevron tend to move in the same direction as crude — but often with a lag of a day or two. With bond yields also rising on inflation fears, money is rotating into hard-asset sectors like energy. As long as the conflict stays unresolved, each new escalation gives oil and oil stocks another leg up, making this a classic geopolitical momentum trade.