Strait of Hormuz reopening faces delays, keeping oil prices high and energy stocks volatile.

The reopening of the Strait of Hormuz remains uncertain due to insurance issues and potential blockades, delaying a quick resolution and keeping oil prices elevated around $100 per barrel. This uncertainty makes trading on the so-called NACHO trade risky, unlike the earlier TACO trade related to tariffs. Energy stocks like Chevron and Exxon Mobil have corrected but could serve as long-term hedges against energy-driven inflation if the conflict prolongs. Investors are advised to watch the situation closely but avoid aggressive energy trades until geopolitical clarity improves, as a peace deal between the U.S. and Iran has just over a 60% chance by year-end according to Polymarket.