May WTI crude oil prices surged to a three-week high on March 27, 2026, with an increase of $3.05 (+3.06%), while May RBOB gasoline rose by $0.0791 (+2.48%) as tensions in the Middle East escalated. President Trump indicated a potential escalation of the Iran conflict, including military action, which has contributed to fears escalating fuel prices.
The Pentagon has deployed approximately 3,500 sailors and Marines to the region, and the Strait of Hormuz, a critical route for oil transport handling one-fifth of the world’s oil, remains largely closed. Energy supplies are tightening, with over 40 energy sites across nine countries reported severely damaged, and Gulf oil producers are cutting output by around 6% due to full local storage capacity. Analysts, including Goldman Sachs, warn that crude prices could approach 2008 record highs if crises continue through March.
Additionally, the EIA noted U.S. crude inventories increased by 0.6% above the seasonal five-year average, indicating ongoing supply chain disruptions and market volatility due to geopolitical tensions. The active U.S. oil rig count dropped by five to 409, just above a 4.25-year low.
