US strikes Iran near Hormuz, oil surges toward $97 — ride the energy rally
The U.S. just carried out airstrikes on Iranian military targets near the Strait of Hormuz for the second time this week. Oil prices jumped nearly 3%, pushing Brent crude toward $97 a barrel, because the Strait of Hormuz is one of the world's most important oil shipping routes.
Idea
Fresh U.S. airstrikes on Iranian targets near the Strait of Hormuz have pushed Brent crude toward $97 a barrel. The Strait of Hormuz handles roughly one-fifth of the world's oil supply — any disruption there is a direct threat to global energy availability. This is the second strike in three days and there's no diplomatic resolution in sight, which means the fear premium in oil could persist or grow. Meanwhile, core inflation just hit a 3-year high at 3.3%, and higher oil prices only add fuel to that fire — making energy stocks a natural hedge. Major oil companies like ExxonMobil and Chevron tend to rise sharply during geopolitical supply scares, and the energy sector ETF (XLE) offers a diversified way to play it.