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ERX, GUSH, DIG and OILU may benefit if oil prices extend their rally.
Oil prices surged Monday after President Trump announced the United States would reimpose a blockade of the Strait of Hormuz and levy a 20% fee on cargo passing through the strategic waterway, escalating tensions in the Middle East.
The blockade is set to begin at 4 p.m. ET on Tuesday, July 14, with U.S. Central Command saying it will enforce restrictions on vessels traveling to or from Iranian ports and coastal areas.
Note that the Strait of Hormuz is a vital chokepoint through which roughly one-fifth of global oil and liquefied natural gas supplies pass daily. About 13 million barrels per day moved through it in 2025, equal to about 31% of all seaborne oil flows, Kpler data showed, as quoted on CNBC.
Brent crude jumped 9.5% to above $83 a barrel, while WTI climbed past $78, both reaching their highest levels in nearly a month. Brent was on track for its biggest one-day gain since May 2020, while stocks retreated, per Yahoo Finance.
The move follows fresh military escalation. Over the weekend, U.S. forces struck about 140 targets, prompting Iran to retaliate with attacks on U.S. bases and infrastructure across Gulf nations. Iran also detained two vessels in the Strait of Hormuz, accusing them of using an unauthorized route.
Inside Oil Demand Profile
Meanwhile, OPEC on Monday cut its forecast for world oil demand growth in 2026 to 780,000 barrels per day, per its monthly report, marking the third straight downward revision, as quoted on Reuters.
The current forecast reduced the expected oil demand growth for this year to 780,000 bpd from 970,000 bpd previously. For 2027, OPEC expects oil demand to increase by 1.94 million bpd, up 210,000 bpd from the previous forecast.
OPEC continues ???to see a smaller impact on consumption since the Iran war started ???than other forecasters such as the International Energy Agency. OPEC said the world economy may ???be better-positioned in the rest of the year and raised its oil demand growth forecast ???for 2027 (read: IEA Sees Oil Market Excess in 2027: Should You Play Short Energy ETFs?).
Inside OPEC+ Output
OPEC+ countries boosted production by 1.18 million barrels of oil per day month-on-month to 27.633 million bpd in June, though the countries lagged the quota by 7.111 million bpd, according to the organization's monthly report (per Interfax).
Leveraged Oil & Energy ETFs in Focus
Despite headwinds such as slower demand growth, the latest U.S. blockade move should keep oil prices elevated. Against this backdrop, investors can play leveraged oil and energy-based exchange-traded funds (ETFs) like Direxion Daily Energy Bull 2X Shares (ERX - Free Report) , Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares (GUSH - Free Report) , ProShares Ultra Energy (DIG - Free Report) and MicroSectors Oil & Gas Exp. & Prod. 3x Leveraged ETN (OILU - Free Report) to earn some quick gains now.
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Image: Bigstock
Leveraged Oil ETFs Likely to Surge as Hormuz Tensions Deepen
Key Takeaways
Oil prices surged Monday after President Trump announced the United States would reimpose a blockade of the Strait of Hormuz and levy a 20% fee on cargo passing through the strategic waterway, escalating tensions in the Middle East.
The blockade is set to begin at 4 p.m. ET on Tuesday, July 14, with U.S. Central Command saying it will enforce restrictions on vessels traveling to or from Iranian ports and coastal areas.
Note that the Strait of Hormuz is a vital chokepoint through which roughly one-fifth of global oil and liquefied natural gas supplies pass daily. About 13 million barrels per day moved through it in 2025, equal to about 31% of all seaborne oil flows, Kpler data showed, as quoted on CNBC.
Brent crude jumped 9.5% to above $83 a barrel, while WTI climbed past $78, both reaching their highest levels in nearly a month. Brent was on track for its biggest one-day gain since May 2020, while stocks retreated, per Yahoo Finance.
The move follows fresh military escalation. Over the weekend, U.S. forces struck about 140 targets, prompting Iran to retaliate with attacks on U.S. bases and infrastructure across Gulf nations. Iran also detained two vessels in the Strait of Hormuz, accusing them of using an unauthorized route.
Inside Oil Demand Profile
Meanwhile, OPEC on Monday cut its forecast for world oil demand growth in 2026 to 780,000 barrels per day, per its monthly report, marking the third straight downward revision, as quoted on Reuters.
The current forecast reduced the expected oil demand growth for this year to 780,000 bpd from 970,000 bpd previously. For 2027, OPEC expects oil demand to increase by 1.94 million bpd, up 210,000 bpd from the previous forecast.
OPEC continues ???to see a smaller impact on consumption since the Iran war started ???than other forecasters such as the International Energy Agency. OPEC said the world economy may ???be better-positioned in the rest of the year and raised its oil demand growth forecast ???for 2027 (read: IEA Sees Oil Market Excess in 2027: Should You Play Short Energy ETFs?).
Inside OPEC+ Output
OPEC+ countries boosted production by 1.18 million barrels of oil per day month-on-month to 27.633 million bpd in June, though the countries lagged the quota by 7.111 million bpd, according to the organization's monthly report (per Interfax).
Leveraged Oil & Energy ETFs in Focus
Despite headwinds such as slower demand growth, the latest U.S. blockade move should keep oil prices elevated. Against this backdrop, investors can play leveraged oil and energy-based exchange-traded funds (ETFs) like Direxion Daily Energy Bull 2X Shares (ERX - Free Report) , Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares (GUSH - Free Report) , ProShares Ultra Energy (DIG - Free Report) and MicroSectors Oil & Gas Exp. & Prod. 3x Leveraged ETN (OILU - Free Report) to earn some quick gains now.