Oil and gas stocks have surged since the start of the Iran conflict, largely due to the Persian Gulf’s vital role in global oil supply. Approximately 20 million barrels per day pass through the Strait of Hormuz, or roughly 20% of the total global supply.
But the real story for investors goes beyond skyrocketing crude prices: Refiners are now benefiting from an unusual gap between crude and refined product prices, such as diesel, gasoline, and jet fuel. Known as crack spreads, these gaps have propelled downstream oil stocks, especially in the United States.
