Key Points
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President Donald Trump forecasts that the Iran war may last a few more weeks.
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As of April 7, crude oil prices surged to $113 a barrel, with potential increases to $150 or $200 depending on the war’s duration.
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Traffic through the Strait of Hormuz, a key oil transit route, has declined, impacting global oil and fertilizer prices.
The conflict in Iran has now persisted for over a month, leading to unpredictable market conditions. Investors are advised to consider stocks that could perform well in both prolonged conflict scenarios and quick resolutions. Stocks of interest include Chevron, which could see further gains if oil prices increase, and Lockheed Martin, expected to benefit from increased defense spending.
Moreover, rising demand for fertilizer due to supply disruptions highlights the iShares MSCI Agriculture Producers ETF as a potential investment. Conversely, sectors like airlines and mortgage firms are likely to struggle amid rising fuel costs and inflationary pressures.
