Piper Sandler says Strait of Hormuz to remain closed for months and oil to hit new highs
Energy
Piper Sandler warns the Strait of Hormuz could remain closed for months, potentially driving crude oil to new highs this summer. This creates a setup where energy producers and tanker re-route beneficiaries outperform while refinery margin complexity and consumer discretionary face headwinds.
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Angle
↔ PAIR+8% target-5% stop4-8 weeks / into summer
Long USO / XLE into summer as Hormuz closure threat keeps crude bid — pair with long tanker re-route plays FRO and STNG for the logistics premium.