Oil soars 3.2% as Trump swears the US is 'taking over' the Strait of Hormuz. Protect your riches before the shock hits

Gold is often described as a safe-haven asset because some investors turn to it during periods of war, political instability or concern about the value of paper currencies. Given these potential risks to traditional portfolios, many investors are proactively seeking assets that can help maintain stability during periods of heightened global tension. This turmoil illustrates to investors why relying too heavily on a single market or investment type can leave a portfolio exposed when geopolitical tensions suddenly escalate. Oil prices rose (3) following the latest fighting between the U.S. and Iran, with Brent crude climbing 3.2% to $78.46 per barrel in mid-July. The S&P 500 and Nasdaq also slipped as investors weighed the potential economic fallout, although the losses remained relatively contained — 0.2% and 0.7%, respectively, according to AP News. A return to traffic interruptions through the Strait could restrict global energy supplies even further, raise fuel prices and add to inflationary pressures. All of which the U.S. — and the world — have struggled with following the start of the war in February. The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. During the first half of 2025, approximately 20.9 million barrels of oil passed through it each day, according to the U.S. Energy Information Administration (2). That was equivalent to roughly 20% of global petroleum liquids consumption and one-quarter of all oil traded by sea. Trump did not explain precisely what "taking over" would entail or announce a new military operation. "Well, we're taking over the Strait," Trump responded. "They have nothing. They've got nothing." The tax breaks in Trump's 'big beautiful bill' expire after 2028 — and experts say most people won't act in time. What to do before the window closes JP Morgan sees gold hitting $6,000/oz before 2027 — and a gold IRA lets you hold the physical metal while deferring the tax bill. Get your free guide from Priority Gold Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one During an interview with Fox News (1), Trump was asked about reports that Iran was attempting to take control of the narrow waterway. President Donald Trump says the United States is "taking over" the Strait of Hormuz as tensions with Iran threaten one of the world's most important energy routes yet again. Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Story Continues Gold prices recently pulled back (4) even as U.S.-Iran tensions intensified, creating a new opportunity for investors to buy this asset at a lower price. However, that does not undermine gold's potential role in a diversified portfolio. Gold's real strength lies in the long term, as investors typically hold it as a store of value and a potential hedge against currency depreciation, inflation or instability. As tensions in the Strait of Hormuz create uncertainty for the global economy, you may be looking for ways to fortify your retirement savings. If you're curious about adding precious metals to your broader inflation-hedging strategy, a gold IRA from Goldco lets you hold physical gold and other metals while still getting the tax advantages of an IRA. With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver. If you're curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today. Just keep in mind that gold is usually best deployed as one part of your portfolio, not a wholesale replacement. Beyond physical assets like precious metals, other alternative investments can offer unique ways to balance your exposure when market conditions fluctuate. Read More: Millionaires under 43 hold only 25% of their wealth in stocks. Here's where their money is actually going Go beyond the market A geopolitical shock does not affect every asset in the same way. Publicly traded stocks can move rapidly as investors react to breaking news, changing oil prices and shifting expectations for inflation and interest rates. Private real estate, by contrast, is not repriced every second of the trading day. That does not make real estate immune to economic conditions. Higher borrowing costs, vacancies, unexpected repairs and declining property values can all reduce returns. But an investment tied to rental income and physical property may behave differently from stocks and provide another potential source of diversification. For accredited investors looking to diversify beyond public equities, Bonaventure offers access to institutional-grade multifamily real estate investments in high-growth markets with a minimum investment of $25,000. With approximately $2.9 billion in assets and over 9,200 units under management, the company focuses on income-producing apartment communities — an asset class supported by the fundamental, ongoing need for housing. Plus, Bonaventure has a fully-loaded resource center that teaches you everything you need to evaluate multifamily investments. Sign up today, explore your options and construct your real estate portfolio. Low-maintenance real estate For investors interested in private real estate but unwilling to purchase and manage an entire rental property themselves, a platform such as mogul can provide another route into professionally selected properties. Founded by former Goldman Sachs real estate investors, the mogul team handpicks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional-quality offerings for a fraction of the usual cost. Each property undergoes a vetting process that requires a minimum 12% return, even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10% and 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property. Getting started is quick and easy. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks. Brush up on diversification When global headlines trigger market volatility, investors often scramble for assets that don't react to the latest energy report or equity index swing. And there is one time-honored asset class that has remained largely detached from the daily forces driving public markets for centuries — powered instead by rarity, cultural significance, and historical prestige. Acquiring an investment-grade masterpiece has traditionally been the domain of the ultra-wealthy, requiring vast capital, specialized storage, insurance, and insider access to the market. Masterworks changes this dynamic by allowing you to purchase fractional interests in works by established artists. The company acquires the art, registers an investment vehicle with the SEC, and manages the painting until it reaches an opportune time to sell. Should the artwork sell for a profit, investors receive their proportionate share of the net returns. It may sound surprising, but more than 70,000 investors have followed suit since 2019. Now you can own fractional shares of works by Banksy, Basquiat, Picasso and more. Masterworks has sold 31 artworks so far, yielding net annualized returns like 14.6%, 17.6% and 17.8%.* Moneywise readers can get priority access to diversify with art: Skip the waitlist here. *Past performance is not indicative of future returns. Investing involves risk. See important Regulation A disclosures at Masterworks.com/cd. Even with a broader array of assets at your disposal, the shifting landscape of global conflict and economics makes it more important than ever to have a professional strategy in place. Get advice before making your next move Headlines about military conflict, oil markets and global trade can tempt investors to make quick decisions with their portfolios. But reacting emotionally to geopolitical events isn't always the best long-term strategy. If you have a portfolio of $250,000 or more, platforms like WiserAdvisor can connect you with vetted professionals who can help you evaluate whether your investments are appropriately diversified for periods of market uncertainty. Simply answer a few questions about your savings, retirement timeline and overall investment portfolio. From there, WiserAdvisor reviews its network to match you — for free — with up to three vetted, reputable advisors aligned with your specific needs. You can then schedule no-obligation consultations with your matches to determine who is the best fit for your long-term goals. WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties, and specific financial results are not guaranteed. You May Also Like 'Gold still crashing!': Robert Kiyosaki admits he was wrong — but doubles down on his $35K prediction I'm 49 years old and have nothing saved for retirement. What do I do? Don't panic. Here are 7 ways to catch up fast When he dies, Warren Buffett said 90% of his wife's inheritance will go into a single investment. Here's why (and how you can do it too) Are you paying too much for car insurance? Here are 3 clever ways to slash your monthly bill Join 250,000+ readers and get Moneywise's best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now. Article Sources We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines. Fox News/ YouTube (1); U.S. Energy Information Administration (2); AP News (3); The Wall