May WTI crude oil (CLK26) on Monday closed up +5.76 (+6.87%), and May RBOB gasoline (RBK26) closed up +0.1120 (+3.73%). Crude oil and gasoline prices settled sharply higher on Monday after Iran on Saturday said the Strait of Hormuz was closed for shipping following a refusal by the US to lift a naval blockade of Iran's vessels. Also, the US Navy fired upon and boarded an Iranian-flagged cargo ship in the Gulf of Oman, the first seizure in the US blockade of the Strait of Hormuz, which threatens to derail US-Iran peace talks. Crude prices extended their advance on Monday after President Trump said it's "highly unlikely" he will extend the ceasefire with Iran after Wednesday.
Escalating tensions in the Middle East are keeping the Strait of Hormuz closed and supporting energy prices. The UK reported Saturday that a tanker was approached by Iranian gunboats off the coast of Oman before being fired at, and an unknown projectile hit a container ship in a separate incident. India also said some of its ships were fired upon. A US-Iran ceasefire is due to expire at the end of Wednesday, and it's unclear whether that truce will be extended, or whether talks between US and Iranian officials will go ahead later this week.
