Displaying items by tag: oil

Oil prices surged as much as 14% in their biggest intraday jump since 2022 after Israeli airstrikes hit Iranian military and nuclear targets, rattling global energy markets. Though prices later pulled back, Brent and WTI crude still ended up nearly 6% on the day, reflecting heightened investor anxiety over potential disruptions in Middle East supply. 

The attacks avoided Iran’s vital oil infrastructure—like Kharg Island and key pipelines—tempering fears of immediate output losses, but analysts warn that any escalation could still threaten flows through the Strait of Hormuz. 

About 20% of global oil transits that narrow waterway, making it a critical choke point vulnerable to retaliation or blockade. While Iran vowed a strong response, energy analysts say an all-out disruption would hurt Tehran too, particularly as it relies heavily on oil exports to China. 

Finsum: For now, traders are eyeing whether the conflict expands into an “energy-for-energy” tit-for-tat, which could turn market jitters into a full-blown supply crisis.

U.S. farmers are facing a sharp drop in soybean and pork exports to China just as planting season ramps up, signaling serious trouble ahead. With China previously accounting for a major share of demand, especially for these two products, the sudden decline in sales — some dropping more than 70% — is hitting a fragile agricultural sector hard. 

The current trade dispute, now broader and more severe than the 2018 tariff standoff, comes with no clear support for producers and is compounded by related conflicts with other trade partners like Canada. This creates a supply chain crunch, not just at the point of export but also in key input materials like fertilizer, making the hit to farmers multifaceted. 

Domestic consumption isn’t likely to absorb the surplus either, especially as U.S. demand for pork remains soft and efforts like increasing biodiesel requirements are not enough to offset lost international sales. 

For many growers, the loss of access to a market of over a billion consumers could be a lasting blow with no easy substitute.

American Energy Fund (AEF) has broadened its asset-backed investment lineup, opening access to domestic oil and gas projects for qualified investors. The new opportunities include ventures in the Permian Basin and North Texas, featuring on-site briefings and a focus on operational transparency. 

AEF believes that in today’s turbulent markets, energy investments are regaining appeal as a reliable asset class. These offerings are limited to accredited investors, meaning participants must meet specific wealth, income, or professional standards set by financial regulators. 

By tailoring these opportunities to sophisticated investors, AEF aims to blend performance, visibility, and compliance into its energy investment strategy.

Finsum: The current administration is no doubt making it friendlier for the energy sector, but will tariffs hinder any regulatory ease. 

Energy stocks have outperformed the broader market this year as investors pivot toward companies with strong cash flow and reliable dividends. Despite a slight dip in oil prices, the S&P 500 Energy Select ETF (XLE) has gained nearly 8%, while tech and consumer discretionary stocks have struggled. 

Energy equities appear more resilient to inflation and tariff concerns, with experts noting that U.S. energy exports are less likely to face retaliatory trade measures. Rising natural gas prices, which have surged over 30% in 2025, have further fueled gains for energy companies. 

Some major pipeline firms, like Plains All American and MPLX, have posted double-digit gains year to date. With Brent crude trading above $71 per barrel, analysts anticipate a gradual climb before prices dip later in the year.

Finsum: With rising inflation expectations, energy stocks could be the pathway to avoid the inflation tax or at least offset it in your portfolio. 

President-elect Trump has announced his intention to block new wind energy projects during his upcoming term, arguing that the industry relies heavily on subsidies to function. Known for his support of fossil fuels, Trump has appointed fracking executive Chris Wright as his Energy Secretary and emphasized policies favoring traditional energy sources. 

His opposition to wind power, which he has called unsightly and harmful to marine life, extends to plans for an immediate executive order to halt offshore wind production. Although renewable energy advocates predict that existing projects will continue despite the political shift, companies like RWE acknowledge potential delays in offshore wind timelines. 

Critics, including Sen. Ron Wyden, have warned that abandoning wind energy will raise electricity costs for families and reduce domestic energy output. Clean energy leaders stress the importance of a diversified energy strategy to meet the nation’s rising energy demands.

Finsum: These policy shifts are clearly going to affect market fundmentals over the next term, will there still be enough industry support to prop up ESG? To be determined.