Every Time President Trump Talks About Iran, Oil Prices Move. Here's the Pattern Investors Should Watch.
There are U.S. political implications to the geopolitical conflict in the Middle East, but most investors should play the long game.
Overview
Oil is on the rise again amid flaring tensions in the Middle East. That's not remotely shocking, given the Strait of Hormuz's importance. The Strait is effectively closed right now. Roughly 20% of the world's oil moves through that single sea passage, so the raging geopolitical conflict has upended the energy market.
While the conflict has been active for only a relatively short time, a trend appears to be emerging. When oil prices rise sharply, U.S. President Donald Trump de-escalates the conflict. There's no way to know if that will happen again, however, which is why long-term investors need to take a big-picture view of the energy sector with stocks like Chevron (NYSE: CVX) and ExxonMobil (NYSE: XOM).
Image source: The White House.
Details
Source
Originally published at www.fool.com.
Related Articles
- Fed Chair Kevin Warsh Testified Before Congress on July 14 and Said Inflation Remains Too High. A Key Inflation Report Came Out the Same Day. Markets Dropped the Odds of a July Rate Hike to 16%, Down From 42% the Day Before. The Odds Have Since Jumped.
- Best Restaurant Stocks to Buy: Starbucks vs. McDonald's vs. Domino's
- Should You Buy the Dip in Intel Stock?