Iran conflict hits the energy markets 🛢️

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After U.S. and Israeli strikes killed Iran's Supreme Leader over the weekend, stocks plunged at the open, then staged an incredible buy-the-dip rally to close nearly flat.

But the real chaos is playing out in energy markets, where Iran announced it has closed the Strait of Hormuz and QatarEnergy shut down the world's largest LNG export facility.

Buckle up 👇️ 

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✈️ Travel stocks got crushed, as airlines and cruise lines shed $22.6 billion in market cap. Norwegian Cruise dropped 10.5%, Carnival fell 7.6%, and Delta, United, and American all lost 2-4% as Middle Eastern airports closed and oil costs spiked (Reuters)

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🔼 Target beat Q4 earnings estimates despite a 1.7% annual sales decline, and guided for 2% net sales growth across every quarter of 2026. Shares are up nearly 20% year-to-date as investors bet on a turnaround under new CEO Michael Fiddelke (Business Insider)

On Saturday, U.S. and Israeli forces launched "Operation Shield of Judah," killing Iran's Supreme Leader Ali Khamenei and striking targets across the country.

Iran retaliated hard by:

• Hitting Saudi Arabia's largest refinery

• Forcing Qatar to shut down its entire LNG operation

• And effectively closing the Strait of Hormuz to commercial shipping

That strait carries one-fifth of all oil consumed globally, plus massive LNG flows to Asia and Europe.

Monday, 150 ships sat stranded at anchor while insurers pulled war-risk coverage for vessels entering the Persian Gulf.

The market impact was immediate.

Oil spiked 13% before settling up 6-7%, European natural gas jumped 40%+, and analysts are warning that sustained disruption could push gas prices sharply higher and reignite inflation.

The big question now isn't just how high oil goes, it's how long this lasts.

President Trump said Monday the U.S. plans to continue operations "for several more weeks."

If the Strait stays closed and Iranian retaliation escalates further, this could become the most significant energy supply shock since the 1973 oil embargo.

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⚠️ Disclaimer: Not financial advice. Do your research before making any trades.