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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“There are reports that Iran is charging fees to tankers going through the Hormuz Strait — They better not be and, if they are, they better stop now! 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 warning about Iran potentially charging fees for tankers in the Strait of Hormuz could lift Chevron and Exxon Mobil Corp. as investors anticipate higher oil prices and stronger margins for major integrated producers. Frontline, as a tanker company, might see increased revenue expectations from higher shipping rates, although geopolitical risk could add volatility to its shares.
Broader sector ETFs like the Energy Select Sector SPDR Fund and the Industrial Select Sector SPDR Fund could react as markets reprice energy costs and the risk of supply disruptions. Energy-focused ETFs may benefit from rising crude prices, while industrials could face pressure if investors fear higher input costs and weaker global trade flows.
Here are some of the stocks that might be affected:
Chevron ((CVX)),
Exxon Mobil Corp. ((XOM)),
Frontline ((FRO)),
Industrial Select Sector SPDR Fund ((XLI)),
Energy Select Sector SPDR Fund ((XLE)).