US strikes Iran near Hormuz, oil surging 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 surged nearly 3%, pushing Brent crude toward $97 a barrel, because the Strait of Hormuz is a critical chokepoint for global oil shipments.
Idea
The U.S. has now struck Iran twice in three days, shattering any near-term hope for a ceasefire. The Strait of Hormuz handles roughly one-fifth of the world's oil, so every escalation threatens supply. Brent crude has already jumped almost 3% toward $97, and the conflict shows no sign of de-escalating — the news explicitly says 'no deal in sight.' When geopolitical risk threatens oil supply, energy stocks tend to rally hard and keep rallying as long as the tension persists. Meanwhile, sticky inflation data released today means the broader market is shaky, which makes the energy sector one of the few places with a strong bullish tailwind right now.