May WTI crude oil (CLK26) on Friday closed up +5.16 (+5.46%), and May RBOB gasoline (RBK26) closed up +0.1070 (+3.47%). Crude oil and gasoline prices rallied sharply on Friday on concerns about a protracted war with Iran. Crude prices also rose amid concerns that reduced Russian crude exports will curb global oil supplies due to the conflict in Ukraine. Crude prices extended their gains Friday afternoon as traders are wary of being short amid fears of any headline risks that could hit the market over the weekend, when markets are closed.
Fears that the war with Iran will continue catapulted crude prices higher on Friday. Iran and Israel exchanged missile fire on Friday, and Iran targeted several Gulf states as the war entered its 27th day. Saudi Arabia said it intercepted two ballistic missiles headed for Riyadh, and Kuwait said drones damaged the port of Shuwaikh, while another port called Mubarek Al Kabeer was also targeted. Meanwhile, the Wall Street Journal reported the Pentagon is considering sending as many as 10,000 additional troops to the Middle East, adding to the 5,000 troops of two Marine Expeditionary Units already sent. Iran's Defense Council warned that any encroachment on Iranian land would lead to the mining of the Persian Gulf, not just the Strait of Hormuz.
