**WTI Crude Oil Rises Amid Middle East Tensions**
On Friday, April WTI crude oil (CLJ26) closed up $2.98, or 3.11%, while April RBOB gasoline (RBJ26) rose by $0.0768, or 2.59%. This surge follows the Wall Street Journal’s report that the U.S. is deploying a Marine expeditionary unit to the Middle East amid escalating threats from Iran in the Strait of Hormuz, where Iranian forces have started laying mines. The Strait typically handles 20% of the world’s oil, and current tensions have led to a 6% production cut among Persian Gulf oil producers.
Despite a temporary decline in crude prices due to a U.S. Treasury waiver allowing Russian oil imports and negotiations between France, Italy, and Iran for safe shipping passages, crude prices spiked earlier to a 3.75-year high of $119.48 following Israeli airstrikes on Iranian oil depots. Goldman Sachs warns that prices could exceed $150 per barrel if supply disruptions persist in the region. Additionally, OPEC+ announced a crude output increase of 206,000 barrels per day for April, although this may now be unlikely due to the ongoing conflicts.
