There are fears we’ll see $100, even $200 oil.

And unfortunately, the higher end of that range is looking more and more likely.

According to Energy Secretary Chris Wright the U.S. Navy is not ready to begin escorting oil tankers through the Strait of Hormuz. 

“It’ll happen relatively soon but it can’t happen now,” Wright said, as quoted by CNBC. “We’re simply not ready. All of our military assets right now are focused on destroying Iran’s offensive capabilities and the manufacturing industry that supplies their offensive capabilities.” Wright added that aid is likely by the end of this month. 

Not helping, three more foreign ships were hit last night – and until that’s brought under control, the idea of $200 oil is real. “Get ready for oil to be $200 a barrel, because the oil price depends on regional security, which you have destabilised,” Ebrahim Zolfaqari, spokesperson for Iran’s military command said, as quoted by Reuters.

In addition, Iran’s new Supreme Leader Mojtaba Khamenei said all U.S. military bases in the Middle East should close immediately because those bases will be attacked. The closure of the Strait of Hormuz should be continued as a “tool to pressure the enemy,” he added.

So, what’s the best way to trade the news?

Investors can always jump into Exxon Mobil, Chevron, and Occidental Petroleum. However, if you want to diversify at a lower cost, ETFs offer good value.  In fact, here are three energy ETFs pushing higher with oil that we’ve been pounding the table over for months.

Start pulling in more than a part time job. In about 5-10 min a day you can make more than most sidehustles. Click here to check it out for just $1.

SPDR Energy Select Sector ETF (XLE)

With an expense ratio of 0.09%, the XLE ETF provides exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries, as noted by State Street SPDR. Since February 20, the XLE ETF ran from about $54.50 to a high of $57.88 so far.

SPDR S&P Oil & Gas Exploration & Production ETF (XOP)

With an expense ratio of 0.35%, the ETF provides exposure 51 oil and gas exploration and production segment of the S&P TMI, which comprises the following sub-industries: Integrated Oil & Gas, Oil & Gas Exploration & Production, and Oil & Gas Refining & Marketing, as noted by State Street SPDR. Since February 20, the XOP ETF ran from about $150 to $164.

Sincerely,

Ian Cooper