US strikes Iran near critical oil shipping route — load up on energy stocks before prices climb more
Fresh U.S. military strikes near Iran's Strait of Hormuz have spooked oil markets. About a fifth of the world's oil flows through that narrow waterway, so any threat of disruption sends prices sharply higher.
Idea
The Strait of Hormuz handles roughly 20% of global oil shipments. Each new escalation near this chokepoint pushes oil higher because traders have to price in the real possibility of supply being cut off. Energy stocks like Chevron and ExxonMobil move in the same direction as oil but often with amplified returns since their profits are directly tied to the price of crude. With the conflict escalating for the second time in three days and no clear resolution in sight, this upward pressure on oil and energy stocks has legs beyond a single day's spike.