The U.S. launches strikes in Iran… will oil hit $100?… gold pops – one of Louis Navellier’s favorite miners… the drone stock that Jonathan Rose and Luke Lango have flagged… Brian Hunt with more defense plays to consider VIEW IN BROWSER Over the weekend, the United States and Israel launched large-scale strikes on Iranian military and leadership targets. Early reports confirm that Iran’s Supreme Leader, Ayatollah Ali Khamenei, was killed in the opening wave. Multiple senior commanders were also killed. Iran has begun to retaliate. Missile and drone attacks have targeted Israeli positions and U.S. assets across the region. Explosions have been reported near key Gulf installations, and the U.S. has confirmed American casualties. Civilian casualties have also been reported across the region. Meanwhile, Iran has moved to restrict traffic through the Strait of Hormuz – one of the world’s most important oil chokepoints. This is not a symbolic flare-up. This is a major escalation with enormous geopolitical and economic implications. Let’s walk through the investment markets to assess the response. Could oil go to $100? As I write Monday mid-morning, U.S. West Texas Intermediate Crude (WTIC) trades at roughly $71.00 – a 6% jump from Friday’s close of $67.02. The higher price reflects fear that the conflict could escalate, leading to a major supply shortage. The biggest risk in this scenario is that Iran shuts down the Strait of Hormuz – roughly 20% of global oil supply moves through it. Even the threat of a complete Iranian blockage changes the economic calculus. Insurance costs rise. Shipping reroutes. Risk premiums expand. Traders hedge. So, markets are now pricing in the possibility that this becomes more than a headline spike. Here’s CNBC: Tanker traffic through the Strait has already effectively come to a halt as shipping companies take precautionary measures, according to consulting firm Rystad Energy… The worst-case scenario is an attack by Iran on Saudi oil infrastructure followed by a complete closure of the Strait, [Andy Lipow president of Lipow Oil Associates] said Sunday. Oil prices would jump by $10 to $20 in this scenario. Oil market commentators warn that a prolonged blockade could send prices soaring beyond $120–$130 per barrel. | Recommended Link | | | | Silicon Valley insider Luke Lango is stepping forward to share how you can get a pre-IPO stake in OpenAI (for under $10). It will likely be the biggest headline of 2026, and could create THOUSANDS of new millionaires. This is the best chance to achieve the biggest gains this year. Click here for the full story. |  | | How to play oil today To capture any additional spikes in crude prices directly, the United States Oil Fund (USO) is the most common tool. It tracks oil futures, so it moves in concert with the actual price of a barrel of WTIC. It’s up just over 6% as I write. However, because the fund constantly “rolls” these contracts into the next month, it can be a leaky bucket for long-term holders due to maintenance costs known as contango. I won’t get into the mechanics of this now, but it’s important to view USO more as a short-term trading vehicle, not a long-term buy-and-hold play. A steadier alternative is the Energy Select Sector SPDR (XLE), which invests in integrated giants like ExxonMobil (XOM) and ConocoPhillips (COP). These companies own everything from the wells to the gas stations, offering a safety net through steady dividends and refining businesses that can profit even when drilling is tough. It’s up about 2% today. Finally, if you want a narrower bet on the companies doing the digging, the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) focuses on “pure-play” drillers. These smaller, more aggressive companies often skyrocket when oil prices jump – it’s up more than 3% as I write – but they are far more volatile and can struggle if the market suddenly cools. Overall, oil trades on fear faster than just about any other asset class – and right now, fear is back in the equation. Will gold prices reach all-time highs? When geopolitical risk rises, investors wanting stability turn to gold. That’s happening again today as the yellow metal once again reminds investors why it functions as a portfolio hedge during geopolitical instability. As I write, gold is up about 2%, trading at about $5,343. But even higher prices could be on the way. Some analysts suggest gold will soon retest its January 2026 record high of almost $5,600 per ounce. Some major banks, such as JPMorgan, are forecasting $6,300 if the regional conflict leads to a prolonged disruption of global trade. For Wall Street, this move isn’t just about speculation – it’s pricing in the high stakes of a potential energy crisis and the resulting inflationary pressure. The simplest way to position yourself for higher gold prices is through a gold ETF like the SPDR Gold Trust (GLD) or the iShares Gold Trust (IAU). These funds are designed to track the price of gold bullion directly. For a more concentrated bet, look to high-quality gold miners. Legendary investor Louis Navellier has been loading up his portfolios with quality miners for months. Louis holds Agnico Eagle Mines (AEM) in the Growth Investor portfolio. Subscribers are up 212% as I write. And if you think it can’t keep climbing, here’s Louis from last week, pointing toward expected earnings growth – the driver of higher prices: For its fiscal year 2025, Agnico Eagle Mines reported earnings of $8.28 per share, up 95.7% from the prior year. Looking ahead to the first quarter in fiscal year 2026, the analyst community expects earnings to jump 119.6% year-over-year to $3.36 per share and for revenue to increase 66% year-over-year to $4.1 billion. Louis says AEM is a buy up to $268, so you still have time to get in. To join him in Growth Investor and access his other gold miners, click here to learn more. Now, energy and gold are defensive reactions. But there’s also an offensive play that investors shouldn’t ignore. Another high-octane option – drones Modern warfare increasingly favors systems that are cheaper, scalable, expendable – and capable of operating without risking pilots. This puts drones in the spotlight. This won’t surprise regular Digest readers. In our February 24 Digest, I wrote about how drones are transforming modern conflict. I quoted veteran trader Jonathan Rose, editor of Masters in Trading Live, who put it plainly: Drones are no longer optional in modern defense. They are becoming foundational technology, reshaping how conflicts are fought and how governments allocate capital. Jonathan highlighted a handful of ways to play drones, but the company that has delivered some of the greatest returns for him and his subscribers over the last year has been Kratos Defense and Security Solutions (KTOS). It turns out, this is the exact name that our technology expert Luke Lango, editor of Innovation Investor, highlighted just before news of the attack on Iran: Kratos (KTOS) is a leader in high-performance drones designed to be expendable. In a high-tempo environment, these systems get burned through like AA batteries. That’s the difference between program defense stocks and op-tempo stocks. If headlines read “U.S. Drones Strike Cartel Convoy,” legacy primes may move 1%. High-beta drone manufacturers could move 10% to 15%. Sure enough, as I write Monday, KTOS is up more than 10% - exactly as Luke described. The bigger defense tailwind This weekend didn’t create a defense boom – it just accelerated one that was already underway. As Brian Hunt recently noted in his free newsletter Money & Megatrends, global defense spending is on pace to reach $2.6 trillion in 2026 – an 8% year-over-year increase. Large-cap stocks like Lockheed Martin (LMT) and Northrop Grumman (NOC) have already been strong performers as defense spending accelerates. But Brian says that investors who focus purely on the big players are missing an enormous opportunity in smaller defense stocks: Your average small cap aerospace and defense firm does not make the front of the Wall Street Journal. CNBC does not cover its quarterly earnings announcements. However, this type of firm supplies critical components that the defense industry cannot function without. Flight control systems. Missile guidance system components. Rugged communications and surveillance gear for soldiers. Aircraft carrier parts. As the defense industry booms, these small but critical players could see their market values rise by hundreds of percent. Brian flags several smaller players – one that relates to drones is Innovative Aero (ISSC). Here’s Brian with more details: ISSC is a $400 million company that supplies key systems like displays, sensors, navigation tools, and flight controls for military aircraft. It is modernizing the cockpit by taking old military planes, and turning them into high tech, digital flight decks… ISSC a one-stop shop for turning military planes into semi-autonomous drones. As I write Monday, ISSC is up 7% while LMT and NOC are up 3% and 4%, respectively – validating Brian’s point that smaller supply chain players often move much more than the headline names. What we’re watching now Historically, markets react immediately to geopolitical shocks, but soon thereafter begin asking the more practical question… Is this a real supply disruption event or just a headline event? If the Strait of Hormuz remains meaningfully restricted – not for hours, but for weeks – the story stops being about geopolitics and starts being about inflation. While oil above $100 will boost energy stocks, it will tighten financial conditions, pressure margins, hurt Main Street budgets, and complicate the Federal Reserve’s path forward. On the other hand, if this settles into contained retaliation – strikes without sustained energy disruption – then oil likely finds a ceiling, gold gives back some of its fear premium, and equities revert to trading earnings and liquidity. So, we’re watching the Strait of Hormuz closely. What happens there will ultimately determine whether this is a temporary sector rotation or a sustained macro event with longer-term portfolio implications. We’ll keep tracking it with you here in the Digest. Have a good evening, Jeff Remsburg | 
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