May WTI crude oil (CLK26) on Monday closed up +3.24 (+3.25%), and May RBOB gasoline (RBK26) closed up +0.0688 (+2.16%). Crude oil and gasoline prices rallied sharply on Monday, with crude oil posting a 3-week high after President Trump threatened to escalate the Iran war if there is no deal soon to reopen the Strait of Hormuz.
Fears of a protracted Iran war are underpinning crude prices. The Washington Post said Monday that the Pentagon is preparing for weeks of ground operations in Iran as about 3,500 sailors and Marines have arrived in the Middle East. President Trump told the Financial Times on Sunday that he wants to "take the oil in Iran" and could seize the export hub of Kharg Island, which would involve US ground troops and mark a major escalation of the conflict.
