Inside today’s Daily Journal…

The war in Iran is reaching a critical inflection point.

Anything can happen at this point… On the one hand, we’ve seen the first formal peace offering from the Trump administration. But at the same time, the U.S. is moving thousands of troops into place for a potential boots-on-the-ground invasion into Iran.

Meanwhile, the countdown clock is ticking away toward a crippling energy shortage. Absent an imminent resolution that restores oil flows through the Strait of Hormuz, the stage is set for physical shortages and oil prices trading up to $150 per barrel. And if history is any guide, that would take the air out of today’s bull market.

Over the last four decades, every recession or bear market has been preceded by a rapid increase in the price of oil.

Given this backdrop, we believe the Trump administration will begin pushing for an imminent resolution aimed at restoring global oil flows through the Strait of Hormuz. That resolution comes through one of two pathways: escalation or negotiation.

And we’ve identified one stock that can thrive in either scenario.

Let’s start with the optimistic case.