May WTI crude oil (CLK26) on Tuesday closed up +0.54 (+0.48%), and May RBOB gasoline (RBK26) closed down -0.0030 (-0.09%). Crude oil and gasoline prices settled mixed on Tuesday, with crude oil posting a 4-week nearest-futures high. Crude prices rose on concerns that the war in Iran will escalate if Iran fails to meet President Trump's demand to reopen the Strait of Hormuz by 8 pm tonight. Crude prices fell from their best level, and gasoline slid into negative territory Tuesday afternoon after Axios reported progress had been made in the past 24 hours in talks between the US and Iran.
Crude prices initially surged on Tuesday when Axios reported that the US conducted strikes on military targets on Kharg Island, and Israel told Iranians to refrain from using their country's railway network. Also, Iran pressed on with attacks across the Persian Gulf, dimming chances for peace. President Trump said that a "whole civilization will die tonight" if Iran does not make a deal to reopen the Strait of Hormuz. Iran warned it will respond to escalated US strikes by ramping up its own attacks on energy infrastructure in the Persian Gulf.
