An option trade to play the volatility in oil prices as Middle East tensions persist

Energy equities have pulled back, but the macro setup still argues for a durable floor under oil prices. The Middle East conflict remains unresolved, the Strait of Hormuz disruption continues to limit confidence in supply normalization, and the Energy Information Administration's latest outlook assumes the strait remains effectively closed, with shipments only beginning to resume in the third quarter and not returning to preconflict traffic until 2027. …