
The “Hormuz Hurricane” as I’ve referred to it, as driven by the U.S.-Israel strikes on Iran and the effective closure of the world’s most vital oil chokepoint, pushed Brent crude (CBM26) to a high of $120 per barrel. But history shows that when geopolitical premiums evaporate, they do so with violent speed.
When the war ultimately ends and the blockade is lifted, the trade isn’t just about exiting oil. It is about aggressively positioning for what we refer to as “mean reversion.” For those looking to profit from a collapse in energy prices, the following inverse and leveraged vehicles are the coiled springs of the market.