Israel's incursion into Lebanon is creating panic among older investors who remember the energy crises of the 1970s, Jim Cramer said on CNBC's "Stop Trading!" segment Thursday. He suggested oil company shares as a way to play defense.

"Why couldn't the Saudis side with Iran, Syria and Lebanon and cut off our oil supplies?" Cramer mused. "Is that going to happen? I don't think so." Nevertheless, "Oil is up $1.75 today, so you see the writing on the wall."

Cramer recommended Chevron ( CVX), ConocoPhillips ( COP) and Schlumberger ( SLB). "You have good earnings coming, they will go up in an oil-economic crisis, they're not expensive stocks, and they're a place, yes, to hide in," Cramer said.

Cramer said Motorola's ( MOT) small gain and the relatively small decline in Intel ( INTC) Thursday "are not very constructive" and mainly show that the "sellers have walked away."

"I'd rather be in Nokia ( NOK), but I am reluctant to recommend longs other than dividend plays and the oils" in the current market.
At the time of publication, Cramer had no positions in the stocks mentioned.

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