Strait Of Hormuz: Buy The Fear Before This Waterway Clears

2026-03-13 09:30:06 ET

The Iran War is creating significant volatility in the oil and stock markets, and many investors are clearly nervous. With some forecasts now predicting that oil could hit $150 to $200 per barrel, it is easy to see why investors are concerned. I believe that $150+ oil on a sustained basis could lead to a global recession. However, while this scenario is possible, I do not see it as being likely. The United States and Israel seem to have carried out many of their military objectives, but now, the biggest issue regarding the Iran War seems to be the fact that ships are not passing through the Strait of Hormuz as they were before the war started. This has led to a major spike in the price of oil. However, now that many military objectives seem to have been reached, I expect the United States and other countries to focus their efforts on creating safe passage for ships on the Strait of Hormuz. This waterway has been mined, and safe passage has been threatened in the past, but this has never kept it "closed" for long. Let's take a closer look at why the Strait of Hormuz is likely to be reopened relatively soon and why it makes sense to position for what could be a major relief rally in stocks:

Note: I’m mindful of the heavy human and political weight of current events, but for the purpose of this piece, I’m keeping the focus strictly on the market side of things. The goal here is to provide a clear-eyed look at the economic impacts, independent of the broader headlines. ...

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