May WTI crude oil (CLK26) today is up +3.90 (+4.32%), and May RBOB gasoline (RBK26) is up +0.1080 (+3.65%). Crude oil and gasoline prices are sharply higher today on skepticism about a ceasefire in Iran. Also, a report today from Axios that said the US is close to escalating the war in Iran if the Start of Hormuz remains closed is boosting crude prices.
Crude prices jumped today after Axios reported the Pentagon is developing military options for a “final blow” in Iran that could include the use of ground forces and a massive bombing campaign. If there is no progress in diplomatic talks and the Strait of Hormuz remains closed when President Trump’s deadline ends this weekend, US military escalation appears more likely. President Trump said today that Iran had “better get serious soon, before it is too late, because once that happens, there is no turning back, and it won’t be pretty.”
