Strait of Hormuz is still shut, oil could stay expensive for months — load up on energy stocks
The Strait of Hormuz — the world's most important oil shipping lane — has been shut down since the Iran war began in February, causing a massive energy shock. Even if a ceasefire happens soon, analysts say cheap oil isn't coming back.
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The Strait of Hormuz handles roughly 20% of all oil traded worldwide, and it's been shut since February. That's not a blip — it's a full-blown supply crisis. Even if the US and Iran reach a ceasefire soon, experts warn that oil prices won't snap back to $60 because the damage to supply chains and trust in the region is lasting. China's export prices just jumped the most in three years as the oil shock filters through manufacturing. All of this means energy companies — which profit directly from higher oil prices — are sitting on a multi-quarter tailwind. Big producers like ExxonMobil, Chevron, and Occidental should continue to rake in cash.