Strait of Hormuz blocked indefinitely — ride the oil squeeze with big energy stocks
The Strait of Hormuz — the narrow waterway that carries most Middle Eastern oil to the world — has been blocked for over three months. Experts now believe supply disruptions will last through the end of the year, even if the strait reopens soon.
Idea
About a fifth of the world's oil flows through the Strait of Hormuz, and it's been effectively shut for three months. Analysts are now telling OPEC+ that the disruption will drag on through year-end. Iran has mined large sections of the waterway, and fresh fighting is dimming hopes for a peace deal anytime soon. That means oil supply stays tight, which historically pushes oil prices — and the stocks of big oil producers — higher. Major oil companies like ExxonMobil and Chevron tend to move in the same direction as crude prices, giving traders a way to bet on this trend without dealing with futures contracts.