May WTI crude oil (CLK26) today is up +6.57 (+6.96%), and May RBOB gasoline (RBK26) is up +0.0825 (+2.74%). Crude oil and gasoline prices are moving sharply higher today on doubts about the sustainability of the US-Iran ceasefire. The Strait of Hormuz remains blocked, and Israeli attacks on Lebanon threaten to derail the ceasefire. Crude prices fell from their best levels after NBC reported that President Trump asked Israel to scale back attacks on Lebanon to ensure the success of the Iran negotiations.
The US and Iran both accused each other of violating the ceasefire, with a key disagreement over whether the truce extends to Lebanon. President Trump pledged to keep US troops in the Persian Gulf ahead of Saturday’s talks with Iran, while Iran warned there may be mines in the strait. It remains to be seen if there will be a permanent end to the Iran war as Iran has shown little willingness to accept US demands to eliminate its nuclear program or retire its ballistic missile arsenal.
