U.S.-Iran tension flares again, oil jumping — accumulate energy stocks while the conflict drives prices higher
Oil prices are climbing after a new round of military confrontations between the U.S. and Iran, which is making a peace deal look less likely anytime soon. When tensions flare in the Middle East, oil tends to go up because traders worry about supply disruptions.
Idea
Fresh U.S.-Iran attacks are pushing oil prices higher and peace looks remote. That combination has historically been good for oil stocks for weeks at a time, not just a day. The big integrated companies like Exxon and Chevron benefit directly from higher crude prices, and they also pay dividends so they're less volatile than smaller drillers. Occidental Petroleum is a more aggressive way to play it since it's more sensitive to oil price swings. The energy ETF (XLE) gives you broad exposure if you don't want to pick individual names.