How Trump’s Hormuz ‘Take the Oil’ Post Could Jolt Energy, Defense, and Industrial ETFs

President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:

“With a little more time, we can easily OPEN THE HORMUZ STRAIT, TAKE THE OIL, & MAKE A FORTUNE. IT WOULD BE A “GUSHER” FOR THE WORLD??? President DONALD J. TRUMP”

How Will Trump’s Statement Affect the Stock Market?

This latest post has the potential to affect the stock market. That’s because Trump’s suggestion of forcibly reopening the Strait of Hormuz and “taking the oil” could initially boost sentiment in energy-related ETFs such as XLE, OIH, and VDE, as investors price in the potential for higher production volumes and margins for U.S. oil and services companies. However, the aggressive geopolitical tone may also raise perceived instability in the Middle East, which can increase volatility and risk premiums across the energy sector.

Defense-focused funds like PPA, XAR, and ITA might see buying interest as markets anticipate higher defense spending and elevated demand for aerospace and military equipment, driven by rising geopolitical tensions. In contrast, broader industrial ETFs such as VIS, XLI, and IYJ could experience mixed reactions, benefiting indirectly from potential energy and defense stimulus while also facing downside risk from possible supply disruptions, shipping risks, and global trade uncertainty tied to conflict around Hormuz.

Here are some of the stocks that might be affected:
Vanguard Industrials ETF ((VIS)),
Industrial Select Sector SPDR Fund ((XLI)),
Energy Select Sector SPDR Fund ((XLE)),
VanEck Oil Services ETF ((OIH)),
Vanguard Energy ETF ((VDE)),
Invesco Aerospace & Defense ETF ((PPA)),
SPDR S&P Aerospace & Defense ETF ((XAR)),
iShares U.S. Aerospace & Defense ETF ((ITA)),
iShares U.S. Industrials ETF ((IYJ)).