The Iran war oil shock

The U.S.-Iran war and the closed Strait of Hormuz keep pushing oil prices, and energy and travel stocks, around.

Much of the Persian Gulf's oil ships through the Strait of Hormuz, which the war has largely shut. Each attack or stalled talk pushes oil up, which raises profits at Chevron and Exxon. It also raises costs for airlines and cruise lines, which buy fuel at market prices, and drains shoppers' budgets through gas prices. Each sign of a deal does the reverse. Higher oil also keeps inflation up, which pushes bond yields higher and makes Fed rate hikes more likely.

Where it stands Brent crude rose 1.8% to $106.65 a barrel on Oct. 12, up from $100.32 on Oct. 5, on Middle East supply worries.