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How to Trade Oil As Tensions Between the U.S. and Iran Escalate

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With oil soaring on escalating tensions between the U.S. and Iran, investors are going to need some advice on how they should be trading oil. 

In the latest development, President Donald Trump reportedly ordered a retaliatory strikes on military installations in Iran, per the New York Times. The strike would have been in response to Iran shooting down an unmanned U.S. drone Wednesday.

On Thursday, Stephen Guilfoyle, a contributor for Real Money, weighed in on the oil stocks he's in and how he thinks that investors should trade oil:

"Well, you know, oil is kind of going hand in hand with aerospace right now because of the situation in the Straits of Hormuz. I think you always want, regardless of where WTI or Brent is actually trading, you want some exposure to oil at all times because almost all the real firms, the firms with good cash flows pay some nice dividends," said Guilfoyle. "So you want exposure to production even though production looks like it could suffer for a little bit, and because there's so much oil on top of the earth right now, I think you want to exposure to refining, which is why I swapped. I swapped out of my Exxon (XOM) - Get Free Report and into Valero (VLO) - Get Free Report , but I'm still holding British Petroleum (BP) - Get Free Report , Royal Dutch Shell (RDS.A) and Chevron (CVX) - Get Free Report ."

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