Kharg Island Is On Fire and So Is Your Oil Portfolio

Let's set the scene: Kharg Island — the chokepoint responsible for the bulk of Iran's oil exports — has been struck by US forces. Meanwhile, the US embassy in Baghdad took missiles, five Air Force refueling planes were hit in Saudi Arabia, and Iranian strikes are reportedly piercing Israel's Iron Dome. Oh, and the White House AI czar is already calling for an exit strategy. We are moving fast here.

Energy traders are understandably sweating. The administration is scrambling to offset supply disruption through shale, $CVX's Venezuelan operations, and Alaska LNG exports — with a 17-nation energy ministerial in Tokyo expected to produce tens of billions in deals. Bloomberg's weekend coverage notes Trump is deploying thousands of Marines and an additional warship to the region, which is not exactly the vibe of a conflict winding down.

Markets are technically closed (or data is unavailable), but the VIX would be screaming right now — and anyone holding energy exposure without a hedge is probably not sleeping great. The only thing more volatile than Kharg Island today is the comment section on every finance YouTube channel in existence.