"At the moment, neither side is backing off. Iran has made it clear there won't be any negotiations or surrender. President Trump hasn't ruled out boots on the ground. Unfortunately, until we see signs of cooling tensions, oil prices could gush higher, especially with the Strait of Hormuz choked off."
"A lengthy disruption of the Strait of Hormuz could send oil prices up $40 to $80 a barrel, according to some estimates. If the war goes on for more than three weeks, it could easily exhaust storage capacities, oil could gush to $120. Right now, according to President Trump, the war will likely last five weeks, but could continue until objectives are met."
"Investors suspect widening geopolitical conflict will boost demand for drone systems, putting attention on a sector that's trading at an attractive valuation. Unmanned systems have been a key driver of the growing defense market, given their heavy use in the Ukraine-Russia war that began in 2022."
Escalating U.S.-Iran tensions are pushing oil prices higher, with crude up $2.33 per barrel to $77. Major stock indices decline as a result: the S&P 500 down 0.27%, Dow down 0.52%, and Nasdaq down 0.31%. Gold and Bitcoin also fall. Neither side shows willingness to negotiate, with Iran refusing surrender and President Trump not ruling out ground troops. Oil could reach $100 if tensions persist, with potential $40-$80 increases from Strait of Hormuz disruptions. Extended conflict beyond three weeks could exhaust storage and push prices to $120. Energy stocks like Exxon and Chevron, along with energy ETFs, are positioned to benefit. Drone stocks are also gaining attention as unmanned systems play a critical role in the conflict.
Read at 24/7 Wall St.
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