Two months ago, the oil market went through the biggest crisis in decades. Prices jumped by more than 20% in a single day because the Strait of Hormuz was blocked, causing oil exports from the region—about 31% of the world’s total—to nearly come to a halt. Since then, the oil market has become one of the hottest areas for traders.

I’ve noticed that many people are starting to take an interest in trading oil, but they don’t know how to get started. During a crisis like this, WTI and Brent prices fluctuate by nearly 30% per day. That means if you understand the market and choose the right approach, the opportunity to make profits is enormous—but the risk is high as well.

In essence, trading oil is about guessing the direction of price movement, and there are several methods to choose from. CFDs are one of the most popular options for retail traders because you don’t need to own the actual oil. You simply predict whether the price will go up or down. The symbols used are USOIL for WTI and UKOIL for Brent. The advantage is high leverage, letting you control a large position with little capital, and you can profit whether the market moves up or down. The downside is that during periods of high volatility, you may get stopped out before the market moves in the direction you expected.

Another option is oil ETFs, which are suitable for those who want lower risk. There is no leverage, but there’s also less complexity. You trade through a regular stock broker. For example, USO or BNO, which track the WTI and Brent price respectively. Their risk is lower than CFDs, but the profit potential is more limited as well.

If you’re a professional investor, Futures may be a good choice because liquidity is extremely high. During the crisis, Futures trading volume surged to record levels. Profits can rise sharply when prices spike—but you need to be careful because futures contracts have expiration dates and require high margin.

For everyday investors, oil stocks are an easy-to-access option—especially companies that don’t rely on the Strait of Hormuz. Most stock prices tend to rise in line with global oil prices, and you can also receive dividends. They’re easy to buy and sell through regular stock brokers.

As for buying actual oil, I think that’s not suitable for retail investors. The minimum purchase is 1,000 barrels. It requires a large amount of capital and comes with storage and transportation issues. It’s only suitable for industrial companies.

The most important thing when trading oil is strict risk management. Always set Stop Loss on every order, reduce your position size because volatility is abnormally high, and monitor US-Iran diplomatic news 24 hours a day, since statements from the White House can sharply reverse the market price.

Asian demand—especially from China, India, Japan, and South Korea—remains a key factor. These countries receive 70% of their oil through the Strait of Hormuz. If the crisis lasts longer, prices may continue to stay high.

Overall, trading oil right now is full of opportunities and risks. Choosing the method that fits you best and managing risk well are the most important keys.