Oil prices surged more than two percent to over $65 per barrel for the first time in six months after the White House announced that it will remove waivers for Iranian crude purchases. The waivers, which were granted in November 2018, are set to expire on May 2.
In light of the news, Jeff Marks, Senior Analyst for Action Alerts Plus, shared two themes investors should be looking out for this week in the oil space.
"The price of oil is a natural headwind for economic activity," Marks said. "You know, it's an input cost for many economically sensitive companies and also higher prices at the pump, that's going to take wallet share out from the consumer."
Marks added that the hike in oil prices could signify a turnaround for the larger energy market.
"Although [higher oil] was a tailwind at the start of the year, it's kind of shifting more into that headwind space."
The Iran waivers are the latest in a series of events that have choked global supply and lifted prices from the 18-month nadir they reached on Christmas Eve.