**Crude Oil and Gas Prices Surge Amid Middle East Tensions**
On Friday, April WTI crude oil closed at $97.73, up $2.18 (2.27%), while April RBOB gasoline rose to $3.28, up $0.1591 (5.09%). This dramatic increase comes as the Iran war continues, with the Strait of Hormuz effectively closed and Iran’s ongoing attacks on energy infrastructure in the region. CBS reported that the Pentagon is preparing to deploy ground troops and considers plans to take over Iran’s Kharg Island, which is vital for oil exports.
Damage from Iranian strikes at Qatar’s Ras Laffan Industrial City has severely impacted 17% of the facility’s LNG export capacity, with repairs expected to take 3-5 years. Additionally, Kuwait has shut multiple Al Ahmadi refinery units, exacerbating disruptions. The closure of the Strait of Hormuz usually handles about 20% of global oil flow, and Goldman Sachs warns prices could exceed $150 per barrel if this situation persists. Despite OPEC+’s plans to increase production, Middle Eastern conflicts may hinder these efforts.
