Oil Prices Surge as Middle East Tensions Escalate

In February, the US and Israel launched an attack on Iran, causing WTI crude prices to surge from $90 to $112.95.

However, after the US and Iran agreed on a Memorandum of Understanding (MOU), WTI crude prices fell below $70.

The MOU did not last, as the war escalated again, lifting energy prices higher, particularly for diesel fuel. Transport trucks rely on diesel to haul goods, but customers could substitute truck deliveries with rail deliveries.

Despite this option, investors are not bidding shares of Canadian Pacific Kansas City (CP) higher, and its peers like CSX Corp. (CSX), Union Pacific (UNP), and Norfolk Southern (NSC) are pulling back after strong year-to-date performances.