Despite a two-week ceasefire easing tensions and allowing boats to pass through the Strait of Hormuz, Bank of America reports that 11 million barrels per day of oil production remain offline, potentially taking weeks or months to resume. The recent conflict erased a large oil inventory buildup, tightening supply balances and likely keeping prices higher for longer. Bank of America identifies four top energy companies—California Resources, Devon Energy, Diamondback Energy, and Ovintiv—as strong buy opportunities due to their solid dividends, strategic assets, and potential to benefit from sustained higher oil prices. Investors should watch market reactions closely as the situation remains volatile and could escalate again.
