**Oil Prices Surge Amid Geopolitical Tensions**
On Thursday, May WTI crude oil closed up 11.41%, reaching a 3.5-week high, while May RBOB gasoline increased by 6.36%. These price jumps were primarily driven by President Trump’s announcement of more aggressive actions against Iran, raising concerns over continued disruptions in oil supply, especially through the critical Strait of Hormuz, which typically handles about 20% of the world’s oil.
The ongoing conflict has forced Persian Gulf oil producers to cut production by approximately 6%, with storage capacities nearing their limits. The International Energy Agency highlighted significant damage to over 40 energy sites across nine Middle Eastern countries, further complicating future supply stability. In contrast, OPEC+ plans to increase crude output by 206,000 barrels per day in April, though this may be hindered by the current geopolitical climate.
