Energy Stocks Fuel Stock Market Rally, as Oil Tankers are Attacked, US Blames Iran

Energy Stocks Fuel Stock Market Rally, as Oil Tankers are Attacked, US Blames Iran

$DIA, $SPY, $SOX, $QQQ, $RUTX, $USO, $OIL, $VXX

FLASH: Crude Oil prices rose after 2 Crude Oil tankers were attacked off the coast of Iran, the US blamed Iran for the attack fueling energy stocks to lead the advance.

Crude Oil tankers came under attack Thursday near the strategic Strait of Hormuz, with 1 of them set ablaze, the US blamed Iran in what it called a campaign of “escalating tensions” in a region crucial to global energy supplies.

The US Navy rushed to assist the stricken vessels in the Gulf of Oman off the coast of Iran. The ships’ operators offered no immediate explanation on who or what caused the damage against the Norwegian-owned MT Front Altair and the Japanese-owned Kokuka Courageous. Each was loaded with petroleum products, and the Front Altair burned for hours, sending up a column of thick, black smoke.

US Secretary of State Mike Pompeo said the US assessment of Iran’s involvement was based in part on intelligence as well as the expertise needed for the operation. It was also based on recent incidents in the region that the US also blamed on Iran, including the use of limpet mines to attack 4 Oil tankers off the nearby Emirati port of Fujairah and the bombing of an Oil pipeline in Saudi Arabia by Iranian-backed fighters in May, he said.

“Taken as a whole these unprovoked attacks present a clear threat to international peace and security, a blatant assault on the freedom of navigation and an unacceptable campaign of escalating tension by Iran,” Secretary Pompeo said.

At the United Nations, the United States asked for closed Security Council consultations on the tanker incidents later Thursday.

Iran denied being involved in the attacks last month.

Iran previously used mines against oil tankers in Ys’ 1987 and 1988 in the “Tanker War,” which saw the US Navy escort ships through the region.

Regardless of who is responsible, the price of a barrel ICE Brent Crude Oil spiked as much as 4% immediately after the attack, showing how critical the region remains to the global economy.

The shipping industry views this as an escalation of the situation, and we are just about as close to a conflict without there being an actual armed conflict, so the tensions are very high.

Thursday, the major US stock market indexes finished at: DJIA +101.94 at 26106.77, NAS Comp +44.41 at 7837.11, S&P 500 +11.80 at 2891.64

Volume: Trade in the NYSE, light again, came in at 711-M/shares exchanged

  • NAS Comp +18.1% YTD
  • S&P 500 +15.4% YTD
  • Russell 2000 +13.9% YTD
  • DJIA +11.9% YTD

HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bullish in here.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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