Conflict in Iran is spooking global markets, sending oil prices higher. Some geopolitical experts and professional investors are speculating that prolonged conflict there or a traditional boots-on-the-ground military campaign could send crude price soaring to $150 per barrel.
That would send shockwaves throughout the global economy, but it could also bring opportunity for headline-driven traders with a variety of leveraged ETFs, including the Direxion Daily Energy Bull 3X Shares (ERX ) and the Direxion Daily Energy Bear 2X Shares (ERY ). Those ETFs are linked to the equity-based Energy Select Sector Index and both are worth monitoring over the near-term.
“A prolonged war could lead to a spike in energy prices to over $100 per barrel and inflation,” observed Morningstar’s Leslie Norton on March 6, 2026.
ERX and other bullish oil strategies, including the Direxion Daily S&P Oil & Gas Exploration & Production Bull 2X ETF (GUSH ), could benefit from near-term pops in oil prices, but if those prices remain high for what market participants consider to be too long, renewable energy could come back into focus. In turn, the bearish ERY could benefit.
“Elevated oil prices open opportunities to accelerate energy independence and increase the use of renewables throughout the United States,” added Norton.
Individual Equity Ideas
Not surprisingly, geopolitical headlines stemming from the Middle East encourage some market participants to examine individual oil stocks.
It’s a practical response, and one that could put geared ETFs such as the the Direxion Daily XOM Bull 2X Shares (XOMX ) and the Direxion Daily XOM Bear 1X Shares (XOMZ ) in focus. Shares of Exxon dithered for much of last week, and that could be a sign the bearish XOMZ is worth monitoring over the near-term. The reasoning is twofold.
First, integrated oil stocks such as Exxon spent the first two months of 2026 rallying prior to the Iran headlines. Second, three-figure oil prices isn’t good news for producers, because it damps demand.
Traders considering XOMX and XOMZ obviously need to stay abreast of goings on in Iran, but they shouldn’t ignore Venezuela as a potential catalyst. At a recent Morgan Stanley conference, Senior Vice President Jack Williams said Exxon is preparing to send a team to Venezuela, home to the world’s largest crude reserves, to evaluate potential opportunities there.
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