The market is currently pricing in a quick resolution to the Iran conflict, keeping oil prices relatively subdued. If the Strait of Hormuz remains blocked for a few more weeks, the supply shock will severely outpace current market expectations. Long oil (USO) as a play on the market underpricing the duration and severity of the geopolitical supply disruption. The conflict ends quickly or the administration successfully negotiates an immediate reopening of the strait, causing oil to crater.
USO
HIGH
Mar 26, 16:40
Key Points
['Market expects a quick resolution', 'Strait of Hormuz blockade is a major catalyst', 'Prolonged blockage could send oil to $200+', "Contrarian play to Trump's bearish oil comments"]
March 26, 2026 at 16:40