What is the Strait of Hormuz and why does it matter for oil prices?

The Strait of Hormuz is a narrow waterway between Iran and Oman that connects the Persian Gulf to the wider ocean. It is one of the most important energy corridors in the world — more than a fifth of all global oil and gas shipments pass through it. When it is disrupted or closed, the global supply of oil drops sharply, which pushes prices up. Higher oil prices then ripple through the entire economy, making things more expensive and putting pressure on markets worldwide.

What is an oil supply shock and how does it affect my investments?

An oil supply shock happens when the amount of oil available in the world suddenly falls — often due to conflict, natural disasters, or political decisions. Because oil powers so much of the global economy, a sudden shortage drives up prices and increases the cost of producing and transporting goods. This can slow economic growth, fuel inflation, and cause broad stock market selloffs. However, companies that produce or transport oil can actually benefit from this environment, as they earn more from the higher prices.

What does 'inflation' mean and why should investors care about it?

Inflation is the rate at which the prices of everyday goods and services rise over time. When oil prices surge, the cost of producing and delivering almost everything goes up too — from food to electronics. High inflation makes people and businesses spend more carefully, which can slow economic growth. For investors, inflation is important because it can erode the value of cash savings and put downward pressure on many types of stocks, particularly in sectors like consumer goods, materials, and manufacturing.

What is a 'safe haven' stock and why are tech companies considered one during this crisis?

A safe haven is an asset that tends to hold its value or perform relatively well when broader markets are struggling. During an energy crisis, physical industries — like manufacturing, transport, and retail — face rising costs and shrinking profits. Technology companies, particularly those offering cloud computing, cybersecurity, and digital infrastructure, do not rely on physical supply chains or large amounts of energy to deliver their services. This makes them more insulated from the economic fallout of an oil shock, which is why analysts often view them as a place of relative shelter during turbulent times.

What does 'Analyst Rating' mean on a stock card?

An analyst rating is the recommendation given by a professional financial analyst after researching a company's prospects. Common ratings include 'Buy', 'Hold', and 'Sell'. A 'Buy' rating means analysts believe the stock is likely to rise in value and could be a good investment. A 'Hold' means they think it is fairly priced right now, and a 'Sell' means they believe the price may fall. These ratings are useful guidance, but they are not guarantees — always consider your own financial situation before investing.

What does 'Potential Profit %' mean?

The Potential Profit % is an estimate of how much a stock's price could grow, based on the views of professional analysts. It is typically calculated as the difference between the stock's current price and the average target price set by analysts who cover that company. For example, if a stock is priced at £10 and analysts think it could reach £13, the potential profit would be 30%. This is a forecast, not a guarantee — actual returns may be higher or lower depending on market conditions.

What is a dividend and how does 'Dividend Yield' work?

A dividend is a payment that some companies make to their shareholders, usually from their profits, on a regular basis — such as quarterly or annually. It is a way for companies to share their success with investors. The Dividend Yield tells you how much you would earn in dividends each year as a percentage of the stock's current price. For example, a 5% dividend yield on a £100 stock means you would receive £5 per year in dividend payments, regardless of whether the stock price goes up or down.

14 handpicked stocks

Energy and Tech Havens: Can Hormuz Shock Be Hedged?

The ongoing war with Iran has closed the Strait of Hormuz, sending oil prices soaring and disrupting global equity markets due to rising inflation fears. This prolonged conflict creates a strategic investment opportunity in energy producers and resilient tech stocks that are shielded from the broader industrial downturn.

Jamie Dutta | Financial Market Analyst

Published on March 30

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

NVIDIA Corporation

NVDA

Current price

$167.52

As a dominant force in AI and accelerated computing, NVIDIA's structural growth remains highly resilient and insulated from traditional industrial dow...

As a dominant force in AI and accelerated computing, NVIDIA's structural growth remains highly resilient and insulated from traditional industrial downturns caused by energy spikes.

SHELL PLC - ADS

SHEL

Current price

$92.17

As a major global integrated energy provider, Shell can leverage its diversified upstream operations to offset regional supply shocks and benefit from...

As a major global integrated energy provider, Shell can leverage its diversified upstream operations to offset regional supply shocks and benefit from surging crude prices.

BP p.l.c.

Current price

$46.68

BP's diversified global oil production and trading activities allow it to command higher margins during periods of supply-driven price shocks.

EOG Resources, Inc.

EOG

Current price

$149.56

Equinor ASA

EQNR

Current price

$41.53

CloudFlare Inc.

NET

Current price

$203.02

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Your Basket's Financial Footprint

This basket's total market capitalisation is 4,538,073.095 and is heavily concentrated in one very large holding (≈90% of the total). That large-cap dominance anchors the basket and likely reduces volatility compared with more evenly weighted small-cap baskets.

Key Takeaways for Investors:

Large-cap dominance suggests lower volatility and broad-market-like performance, likely offering more stability than small-cap exposure.
Use this basket as a core, diversified holding rather than a speculative, high-growth allocation.
Expect steady long-term appreciation; don’t anticipate frequent explosive, short-term gains.

Total Market Cap

NVDA: $4.07T
BP: $122.28B
EOG: $80.24B
Other

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

≈

In 12 months it might be worth:

$1,000.00

+5.10%

≈

About This Group of Stocks

Our Expert Thinking

The closure of the Strait of Hormuz has sent oil prices surging and rattled global markets. This group was built around a clear dual strategy: capture the upside from soaring energy prices through oil majors and tanker companies, while taking shelter in high-margin tech firms whose businesses run entirely in the digital world and are untouched by physical supply chain chaos.

What You Need to Know

This is a tactical group designed for a specific market moment. Energy stocks here benefit directly from supply squeezes and higher crude prices, whilst the tech picks are chosen for their resilience during broader economic downturns. The group spans oil producers, tanker operators, refiners, and digital infrastructure providers, giving you exposure across two very different but complementary opportunities.

Why These Stocks

Every stock in this group was handpicked by professional analysts in direct response to the Hormuz crisis. Energy names were selected for their ability to profit from supply disruption and rerouted shipping, whilst the tech stocks were chosen for their non-cyclical, inelastic demand. These are not random picks — each one has a clear, deliberate reason for being here.

Group Performance Snapshot

5.1%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 5.1% over the next year.

11 of 13

Stocks Rated Buy by Analysts

11 of 13 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🛢️

Oil Is Surging — and These Stocks Know It

With the Strait of Hormuz closed and over a fifth of global oil supply in limbo, energy producers in this group are sitting right at the centre of one of the biggest commodity stories in years. The tailwinds are real, and they are happening now.

🛡️

Tech Stocks That Shrug Off the Chaos

While industrial and consumer sectors take a battering, the digital infrastructure companies in this group keep running regardless of what happens to oil prices. Analysts have flagged them as some of the most resilient places to be during this period of turbulence.

📡

Experts Are Watching This Closely

This group was specifically curated by professional analysts in direct response to the Hormuz crisis — it is not a generic basket. If you are not paying attention to this theme right now, you could be missing one of the most tactically relevant investment setups of the moment.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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Energy and Tech Havens: Can Hormuz Shock Be Hedged?

Top Picks from This Group

Your Basket's Financial Footprint

12 Month Growth Potential

About This Group of Stocks

Our Expert Thinking

What You Need to Know

Why These Stocks