May WTI crude oil (CLK26) today is up +4.13 (+3.67%), and May RBOB gasoline (RBK26) is up +0.0210 (+0.63%). Crude oil and gasoline prices are sharply higher today, with crude posting a 4-week nearest-futures high. Crude prices are soaring 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. Gains in crude oil accelerated today after the New York Times reported that Iran has ended negotiations with the US.
Axios reported that the US conducted strikes on military targets on Kharg Island today, 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.
