Since hostilities against Iran began on Feb. 28, energy stocks have proven to be some of the only true winners that bullish investors could count on. That was until a social media post by President Trump sent the price of oil lower, and with it, the price of oil stocks. It was a reminder that when markets are on a knife’s edge, it doesn’t take much to cause big moves.
So it’s worth noting that Chevron Corp. (NYSE: CVX) CEO Mike Wirth says the markets are underpricing supply shocks from Iran's closing of the Strait of Hormuz. Wirth said the market was trading on “scant information” and “perception.” While it might be more accurate to say that investors are facing a firehose of information, the accuracy of that information is in question.
