June WTI crude oil (CLM26) on Monday closed up +4.48 (+4.39%), and June RBOB gasoline (RBM26) closed up +0.1430 (+3.98%). Crude oil and gasoline prices recovered from overnight losses and moved sharply higher on signs of heightened tensions in the Strait of Hormuz.
Crude prices shot higher Monday after the United Arab Emirates (UAE) said an Iranian drone attack caused a fire at the Fujairah oil industry zone. Also, a cargo ship from South Korea was attacked in the Strait of Hormuz, and the UAE issued a missile threat warning after an oil tanker was struck by Iranian drones outside the Strait of Hormuz. The US Central Command said the US military fought off attacks from Iranian drones, missiles, and armed small boats as it facilitated the passage of two US-flagged vessels through the Strait of Hormuz.
