Power Hungry
A wild day in the Persian Gulf... There's no clean end in sight... The market reaction... The demand for oil, natural gas, and electricity... Stocks for a power shortage...
Is the war over? Doesn't look like it...
The United States' "hostilities" with Iran have ended – at least, that's what the White House told Congress on Friday.
Friday marked an important 60-day legal deadline for the White House to wind down the immediate conflict or else ask Congress for authorization for a longer-term war.
However, the U.S. military presence near Iran remains in place – and then some.
And on Sunday, President Donald Trump announced that the U.S. would begin escorting ships linked to "neutral and innocent" nations out of the Persian Gulf in a "humanitarian gesture."
If only it were that simple...
Not long after Trump's announcement, the Islamic Revolutionary Guard Corps ("IRGC") threatened to attack any U.S.-aligned ships in the Strait of Hormuz... and it did, using cruise missiles, drones, and small boats, according to U.S. Central Command.
The U.S. sank at least six of the small Iranian boats, but Trump confirmed today that an Iranian attack damaged a South Korean ship. He also told a Fox News reporter that Iran would be "blown off the face of the Earth" if it attacked U.S. vessels.
The United Arab Emirates ("UAE") has also reported Iranian missile and drone attacks – including on a key oil terminal that bypasses the Strait of Hormuz – for the first time since the U.S.-Iran "ceasefire" went into effect about a month ago.
We mentioned this export route, via the UAE coastal city of Fujairah, last week when writing about the UAE's decision to leave OPEC. A pipeline that terminates there has a capacity of 1.5 million barrels of crude oil per day and a peak capacity of about 1.8 million barrels per day.
On the conflict goes...
The IRGC clearly wants to maintain control of the Strait of Hormuz and has said it will allow any tankers not aligned with the U.S. or Israel through... but only if they pay a high-priced "toll." And then there are other Iranian leaders interested in negotiating with the U.S.
None of this is ideal for oil, gas, and other commodities caught in the crossfire. Ship traffic to and from the Persian Gulf continues to be effectively stopped, with no clean end to the disruptions in sight.
Meanwhile, Qatar's state-run energy company said today it's extending its "force majeure" – a legal out from commercial agreements because of extraordinary situations – on liquefied natural gas exports through mid-June.
Oil futures rose again...
In the past 24 hours, Brent crude – the international benchmark– July futures are up 5% to more than $113 per barrel, and West Texas Intermediate crude June futures are up about 3% to around $105 per barrel.
Stocks fell this morning amid the torrent of war news from the Persian Gulf. All the major U.S. stock indexes finished lower, though it was far from a panic. The benchmark S&P 500 Index was 0.4% lower, and the Dow Jones Industrial Average was down around 1%. Energy stocks were up almost 1%.
Notably, bond yields have also been trending higher, with the 10-year Treasury yield near its high for the year at around 4.45%.
It looks like the broader market is coming around to considering the longer-term economic effects of the war in Iran.
As we've written before, higher oil prices could be a boon for certain U.S. energy producers and suppliers. Yet in the shorter run, higher costs will be passed on to consumers, which could weigh on U.S. economic activity.
Oil prices are already up roughly 80% since the start of the year. The longer they stay elevated, the bigger the inflationary impact will be.
Meanwhile, there's no shortage of energy demand...
In Friday's Stansberry's Investment Advisory monthly issue, the team explained that we're facing a "power starved" U.S. energy grid, thanks to demand from data centers and the AI boom...
For decades, America's electricity demand grew steadily with population growth and economic growth.
From 1950 to 2005, U.S. electricity demand had a 4.7% compound annual growth rate. Then power-hungry factories moved overseas, and folks bought more efficient lightbulbs. For a decade, power demand stagnated.
Now, power demand is growing once again. And leading the way is the commercial sector... which includes data centers. Take a look (the chart includes estimates of this and next year's demand)...
We've talked before about data centers' voracious power needs...
Data centers are essentially big open-floor buildings filled with servers. When they're just storing data, they don't need too much power... But servers with state-of-the-art chips used to train or run AI models are incredibly energy intensive.
I (Corey McLaughlin) don't know about you, but I don't need much convincing to bet on higher electricity prices, blackouts, and chaos linked to energy supply – or lack thereof.
The president of electric grid operator PJM Interconnection, which does business in 12 mid-Atlantic and Midwestern states, covering about 67 million people, issued his own warning about the power supply in March.
Now, part of this claim is public posturing...
PJM is trying to build a new power-line project here in Maryland, in part to link energy sources in Pennsylvania to data centers in Virginia. But the operator has faced public opposition and folks threatening surveyors who come onto their properties.
A key federal appeals court hearing on the matter is set for tomorrow. Ahead of it, PJM's president wrote that the region could face "system collapse and blackouts" as early as summer 2027 if the project doesn't move ahead.
No matter what, we're likely to at least see electricity prices stay higher for longer. You see, these "AI fights" for power are happening around the country.
So on Friday, our Investment Advisory team identified a utility stock that could double over the next three years by providing the power that these data centers demand. Existing subscribers and Stansberry Alliance members can find it here.
Speaking of a power shortage...
Last week, Marc Chaikin and Jeff Brown, from our corporate affiliates Chaikin Analytics and Brownstone Research, went on camera to discuss another angle of America's power shortage... and how it could put pressure on many of today's biggest tech stocks.
This development is creating a "dark AI" crisis where millions of AI chips sit unused in data centers across the country.
But according to Marc and Jeff, a new AI company has been formed specifically to address this crisis.
In their free presentation, they detail exactly how investors can position themselves to profit... and they share a ticker to claim a stake in this company. If you missed the debut last week, you can watch a replay here.
New 52-week highs (as of 5/1/26): ABB (ABBNY), Advanced Micro Devices (AMD), Amazon (AMZN), Alpha Architect 1-3 Month Box Fund (BOXX), CBOE Global Markets (CBOE), Ciena (CIEN), Cisco Systems (CSCO), Deluxe (DLX), DigitalOcean (DOCN), Emcor (EME), iShares MSCI Emerging Markets ex China Fund (EMXC), iShares MSCI South Korea Fund (EWY) FirstCash (FCFS), Alphabet (GOOGL), iShares Convertible Bond Fund (ICVT), Intel (INTC), KraneShares Bosera MSCI China A 50 Connect Index Fund (KBA), KraneShares Global Humanoid and Embodied Intelligence Index Fund (KOID), Keyence (KYCCF), Lamar Advertising (LAMR), Lumentum (LITE), Altria (MO), Nucor (NUE), Invesco WilderHill Clean Energy Fund (PBW), Roku (ROKU), ProShares Ultra Technology (ROM), Starbucks (SBUX), Viper Energy (VNOM), and State Street SPDR S&P Semiconductor Fund (XSD).
In today's mailbag, feedback on a reply in Thursday's mail criticizing the Federal Reserve and government spending... Do you have a comment or question? As always, e-mail us at feedback@stansberryresearch.com.
"I just read the feedback article where the gentleman was bashing the Federal Reserve, wanting to go back on the gold standard, complaining about Covid stimulus checks, etc.
"When I read things like this it reminds me 'those who don't learn from the past are bound to repeat it.'
"All these decisions were made for good reason. There are pros & cons to ANY decision, just because you don't like the 'con' that comes with it doesn't necessarily make that decision wrong...
"Yes, I would agree that the government officials spend too much money, but tell me, what benefit would YOU like to give up to help the situation?" – Subscriber Troy J.
All the best,
Corey McLaughlin
Baltimore, Maryland
May 4, 2026