Middle East ceasefire in danger after Iran attacks Israel — ride the oil spike o
Thesis
Missile attacks threatening a fragile Middle East ceasefire immediately disrupt global energy markets. Because the region is a massive oil producer, any escalation creates fear of supply shocks, driving crude prices higher. Energy companies like Chevron directly profit from these sudden price spikes in the oil they sell. With tensions flaring and OPEC's own exports already choked by the war, this rally has the fuel to run further as investors rush to pricing in the geopolitical risk.
Strategy approach
Build a rule-based strategy that enters long USO on the daily timeframe when the daily close is greater than the previous day's high by at least 1%, and the 10-day average volume is exceeded by 50%. Exit when the price closes below the 10-day simple moving average, or after a maximum hold of 10 trading days. Use a 4% trailing stop.