3 Stocks to Buy During the Hormuz Crisis — and Why

Group 1: Importance of the Strait of Hormuz - The Strait of Hormuz is a critical passage for oil and LNG exports, with approximately 20% of the world's oil supply at risk due to the ongoing conflict in Iran [1][2] - Disruptions in the Strait affect not only crude oil but also natural gas, fertilizer, and agricultural markets, which are often overlooked by investors [2] Group 2: Investment Opportunities in Oil Stocks - The volatility of oil prices, exemplified by a near-30% reversal in a single session, makes trading crude during geopolitical crises highly unpredictable [3] - Companies like Devon Energy (DVN) and Equinor (EQNR) are highlighted as strong investment options due to their low breakeven costs, allowing them to remain profitable regardless of oil price fluctuations [4][5][6] Group 3: Specific Company Analyses - Devon Energy, a major shale producer, has a low breakeven oil price and is benefiting from new pipeline capacity that connects its production to LNG export facilities [4][5] - Equinor, Europe's largest piped gas supplier, has successfully navigated previous supply crises and is currently trading nearly 20% below its 2022 peak, presenting a potential buying opportunity [5][6] - Mosaic, while not directly linked to oil, is positioned to benefit from rising nitrogen prices affecting crop planting decisions, which the market has not fully recognized yet [7][8]