After a pivotal peace deal between the U.S. and Iran, tensions spiked once again as President Donald Trump stated that the ceasefire agreement was “over.” While Trump also mentioned that the recent flareup in the conflict did not mean a return to full-scale war, the mixed messaging nevertheless sank the S&P 500. However, the circumstance would seem to be a cynical catalyst for Chevron (CVX) stock.
Initially, the fossil-fuel sector experienced a sizable jump in value as the Iran war led to the closure of the critical Strait of Hormuz. Subsequently, economies roiled under the inflationary pressure, with many experts fearing a global depression if the situation wasn’t addressed swiftly. Thanks to the prior peace deal, it seemed as if disaster would be averted.
