The closure of the Strait of Hormuz amid rising geopolitical tensions has sent oil prices nearing $100 per barrel, prompting investors to seek energy-related stocks that can mitigate headline risk. With 34% of global crude oil trade and 20% of liquefied natural gas (LNG) flows passing through this critical passage, the potential for supply disruptions is significant, impacting not only oil but also fertilizer markets reliant on natural gas.

In this environment, U.S. producers like CF Industries emerge as strong candidates for investment. As the world’s largest ammonia producer, CF Industries benefits from stable North American gas supplies and is well-positioned to address the fertilizer supply gap created by instability in the Gulf. Additionally, Woodside Energy, an Australian LNG producer, has secured multiple long-term supply agreements, making it a compelling option for investors looking at the LNG sector’s future.

For professionals navigating these turbulent waters, CF Industries and Woodside Energy present valuable opportunities. I recommend diving deeper into the full article for a comprehensive analysis of these stocks and their potential in the current market landscape.

Source: fool.com