Iran calls for an end to the war as the US prepares its toughest sanctions

WHAT HAPPENED

Iran called to end the war with the US, while Washington prepares for Monday its toughest sanctions against Tehran. The Strait of Hormuz remains blocked and oil rose more than 5% this week: Brent at $93.96 and WTI at $86.94.

WHY IT MATTERS

One-fifth of the world's oil passes through Hormuz. If the blockade continues and China reduces its purchases from Iran, there will be less crude available: first felt by gasoline, transportation, airlines, and products that depend on moving goods.

AND FOR YOUR PORTFOLIO

For a long-term portfolio, expensive oil can benefit energy companies, but it pressures transportation, consumption, and businesses with high costs. At home, the effect usually arrives as more expensive gasoline, shipping, and some other products.