May WTI crude oil prices rose by +0.69% to reach a four-week high of $112.47 per barrel today, while May RBOB gasoline increased by +0.03% to $3.11 per gallon. This surge follows President Trump’s ultimatum to Iran regarding the reopening of the Strait of Hormuz, where he threatened severe consequences if not complied with by Tuesday.
Discussions for a potential 45-day ceasefire involving the US, Iran, and regional mediators are underway but seem unlikely, according to Iranian officials. Meanwhile, crude prices were supported by Saudi Aramco’s significant price hike of $17 per barrel for its main oil grade to Asia for May delivery, marking the largest increase on record.
The Strait of Hormuz, which typically handles 20% of the world’s oil, remains largely closed due to ongoing conflicts, forcing Persian Gulf oil producers to cut production by approximately 6%. OPEC+ plans to boost output by 206,000 barrels per day in May, although this appears uncertain due to the ongoing regional instability.
