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How a contrarian trade can help you as an investor stay ahead of the Israel-Iran conflict - MarketWatch

1. Potential U.S. involvement in Iran conflicts may disrupt oil markets. 2. Iran could block shipping through the vital Strait of Hormuz. 3. 20% of global oil consumption flows through the Strait annually. 4. Investors encouraged to consider oil-delivery contracts and ETFs like USO. 5. Recent price increases reflect potential market volatility.

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FAQ

Why Bullish?

Disruptions in oil supply systems historically lead to price increases. For example, during past geopolitical tensions, oil prices spiked significantly.

How important is it?

Potential disruption affects oil prices, impacting ETFs tracking oil like USO directly. Market participants actively respond to geopolitical events related to oil transport.

Why Short Term?

Immediate geopolitical concerns usually drive swift market reactions. Recent tensions have historically resulted in rapid oil price volatility.

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