Oil Price Surge: How to Keep Your Money Safe

Learn how to guard your savings from oil price jumps caused by Iran trouble. Try energy funds and bonds.

Oil’s Making Life Expensive

Oil’s getting crazy. On June 21, 2025, the U.S. bombed Iran’s nuclear plants. By June 23, oil hit $81.40 a barrel. That’s up 18% since June 10. Gas pumps hurt more. Groceries too. It’s got folks worried about their cash.

At SteadyIncomeInvestments.com, we help you keep your money steady. This article shows how to protect your savings when oil prices climb. We’ll talk about energy funds, special bonds called TIPS, and stocks like Chevron. These pay you regularly and handle rising costs. Can your savings survive $100 oil? Let’s figure it out.

Why Oil’s Going Up

Iran’s Mess and Your Cash

The U.S. hit Iran’s nuclear sites, saying they’re dangerous. Iran pumps tons of oil—3.8 million barrels a day. If they fight back, oil could cost even more. A key shipping route, the Strait of Hormuz, moves 20% of the world’s oil. If it shuts down, watch out. Oil’s already jumped from $79.04 to $81.40 in two weeks. Some say $100 is next. That means pricier gas, food, and heat.

This hits your budget. Higher oil means higher prices for everything. Stocks are nervous—the S&P 500 dropped 3% since June 13. But energy stuff is doing okay. A fund called XLE went up 2.6% last week. Bonds like TIPS, paying 2%, stay calm. These can keep your money safe.

Why You Need a Fix

Oil spikes mess things up. Prices climb, stocks fall, and regular savings might not cut it. Our readers want money that keeps coming, no matter what. Energy funds and TIPS do that. They pay you, grow with oil, and block rising costs.

Iran’s trouble brings three headaches:

1. Bigger Bills: Oil makes gas and food cost more.

2. Stock Slumps: Bad news tanks stocks, shrinking your savings.

3. Less Buying Power: Higher prices mean your dollars buy less.

Energy funds, TIPS, and stocks like Chevron fix these. They give cash, ride oil’s wave, and fight price jumps.

Energy Funds

Why Energy Funds Work

Energy funds, or ETFs, hold stocks of oil and gas companies. When oil’s at $81.40, these companies make bank. Their stocks rise, and they pay you cash, called dividends. XLE, a big fund, pays 3.5% and climbed 2.6% last week. It’s got companies like Exxon and Chevron.

ETFs are simple. You buy them like stocks. They spread your money across lots of companies, so one bad apple doesn’t hurt much. Last summer, my neighbor put $5,000 in XLE. He’s earning $175 a year and loves the extra cash.

How to Use Them

Put 10–15% of your savings in energy funds. For $100,000, that’s $10,000–$15,000. XLE costs $90 a share, with a tiny 0.09% fee. A $10,000 buy could pay $350 a year. If oil hits $100, XLE might grow more. In 2022, it soared 65% when oil spiked, while stocks crashed 18%.

Funds like XLE don’t always follow stocks. They’re a safety net when markets dip. But if oil falls, they can drop too. Keep it small to stay safe.

Tips to Try

• Grab a Good Fund: Buy XLE or Vanguard’s VDE, which pays 3.2%.

• Don’t Go Nuts: Stick to 10–15% so a dip doesn’t sting.

• Eye the News: Iran’s moves or oil cuts could lift funds.

• Check Once a Year: If XLE’s too big, sell some for other stuff.

TIPS Bonds

Why TIPS Are Cool

TIPS are government bonds that grow with prices. They pay you twice a year, and their value rises if stuff costs more. They’re at 2% now. If oil pushes prices up, your TIPS get bigger. A $10,000 TIPS bond pays $200 a year. If prices rise 3%, it’s worth $10,300, plus interest.

The U.S. government backs TIPS, so they’re super safe. During Iran’s drama, their 2% payout stayed steady. My aunt bought TIPS in 2022. She’s happy her money’s safe while prices climb.

How to Use Them

Put 5–10% of your savings in TIPS. For $100,000, that’s $5,000–$10,000. Buy them straight from TreasuryDirect.gov or get an ETF like iShares TIP, which pays 2.1% for a 0.19% fee. A $10,000 buy in TIP pays $210 a year and grows with prices.

TIPS pair great with energy funds. Funds chase oil’s rise, TIPS block price jumps. In 2022, when prices hit 9%, TIPS gained 6% while regular bonds lost 13%.

Tips to Try

• Buy Easy: Use TreasuryDirect.gov for no fees or TIP for simplicity.

• Pick 5–10 Years: These TIPS pay well and guard against prices.

• Mix It Up: Combine TIPS with funds for full protection.

• Watch Prices: Oil spikes mean more inflation, which helps TIPS.

Stocks Like Chevron

Why These Stocks Shine

Stocks like Chevron run oil and gas businesses. They drill, refine, and pay you dividends. Chevron’s up 2% last week and pays 4%. At $81.40 oil, they’re making more cash. That could mean bigger payouts or stock gains.

Stocks are trickier than funds but can pay better. A $10,000 buy in Chevron at $150 a share pays $400 a year. If oil climbs, Chevron might too. In 2021, it jumped 40% as oil rose.

How to Use Them

Put 5–10% of your savings in energy stocks. For $100,000, that’s $5,000–$10,000. Buy Chevron or ExxonMobil, which pays 3.5%. Spread across 2–3 stocks for safety. You could earn $200–$400 a year on $10,000.

Stocks fit with funds and TIPS. Funds cover lots of companies, TIPS fight prices, and stocks add extra cash. But if oil drops, stocks can fall. Keep them small.

Tips to Try

• Pick Strong Stocks: Chevron or ExxonMobil pay well and stay solid.

• Stay Light: Keep stocks at 5–10% to avoid trouble.

• Track Oil: Higher oil lifts stocks like Chevron.

• Use Dividends: Reinvest payouts to buy more shares.

Your Money-Saving Plan

Putting It All Together

Mix energy funds, TIPS, and stocks for a strong setup. For $100,000, try:

• Energy Funds (12%): $12,000 in XLE for 3.5% cash and oil gains.

• TIPS (10%): $10,000 in TIP for 2% and price protection.

• Stocks (8%): $8,000 in Chevron for 4% payouts.

• Cash or Other (70%): $70,000 to stay flexible.

This could pay $2,000–$2,500 a year. XLE rides oil’s climb, TIPS block price spikes, Chevron adds cash.

Stay Careful

• Funds: Oil drops could hit XLE. Keep it small.

• TIPS: Low prices might slow TIPS. Mix with funds.

• Stocks: Chevron might dip if oil falls. Choose wisely.

Check your mix yearly. Sell if one part’s too big.

Can Your Savings Handle $100 Oil?

Picture $100 oil. Gas and food prices skyrocket. Stocks fall 10%. Will your money hold up? XLE pays 3.5% and grows. TIPS keep you safe at 2%. Chevron’s 4% dividends flow. Start now to stay strong.

The Numbers

• Oil: $81.40 a barrel on June 23, up 18% since June 10.

• Energy Funds: XLE up 2.6%, pays 3.5%.

• TIPS: 2% payouts, steady.

• Stocks: Chevron up 2%, pays 4%.

• Market: S&P 500 down 3% since June 13.

These prove you need a plan.

Wrap-Up: Keep Your Money Steady

Oil’s at $81.40 and might hit $100. Iran’s trouble shakes markets. But energy funds, TIPS, and Chevron can save your cash. XLE pays 3.5% and follows oil. TIPS pay 2% and grow with prices. Chevron gives 4%. Try 12% funds, 10% TIPS, 8% stocks. Buy XLE, TIP, and Chevron now. Watch oil news and check yearly.

At SteadyIncomeInvestments.com, we want your savings safe. Start today. Your money can beat this oil surge.