**Oil Prices Surge Amid Middle East Tensions**
On April 24, June WTI crude oil prices rose by $6.95 (6.95%), reaching a three-week high, while June RBOB gasoline increased by $0.1650 (4.81%), hitting a 3.75-year high. The surge in crude oil prices is attributed to stalled peace talks between the U.S. and Iran, maintaining the closure of the Strait of Hormuz, which is vital for global oil shipments. The U.S. naval blockade of Iranian ports will continue until a deal addressing Iran’s nuclear program is secured, exacerbating concerns over global oil supply disruptions.
Goldman Sachs estimates that crude output from the Persian Gulf has decreased by approximately 14.5 million barrels per day (bpd) in April, over 50% of normal production. The International Energy Agency reported that about 13 million bpd of the global oil supply has been impacted by the ongoing conflict concerning Iran. In response to these challenges, U.S. crude oil inventories fell by 6.23 million barrels, significantly higher than anticipated, leading to heightened market anxiety regarding energy shortages.
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