A months-long crisis in the Strait of Hormuz has turned the shipping sector into one of 2026's hottest trades, sending stocks to their highest levels in over a decade. The crisis has forced tankers onto longer routes and pushed up insurance costs, effectively tightening vessel supply. The Breakwave Tanker Shipping ETF has surged 650% since the Middle East war began in February. Analysts note that shipping provides a hedge to geopolitical instability, though some caution that a meaningful portion of the premium is "fear pricing" that could deflate if the situation normalizes.