**Crude Oil and Gasoline Prices Surge Amid Iran Conflict**
On Monday, May WTI crude oil (CLK26) closed up $3.24 (+3.25%), reaching a three-week high, while May RBOB gasoline (RBK26) increased by $0.0688 (+2.16%). This spike follows President Trump’s threats to escalate military operations in Iran if the Strait of Hormuz remains non-operational. Approximately 3,500 U.S. sailors and Marines have been deployed to the Middle East.
Concerns over the ongoing Iran conflict have resulted in a forced production cut among Persian Gulf oil producers, reducing output by about 6%. The Strait of Hormuz, which typically handles one-fifth of the world’s oil, remains largely closed. Goldman Sachs warns that crude prices could surpass the 2008 record high of nearly $150 per barrel if these disruptions persist through March.
OPEC+ plans to increase crude output by 206,000 barrels per day in April, but this may be hindered due to the ongoing Middle East war. Meanwhile, Vortexa data indicates that approximately 290 million barrels of Russian and Iranian crude are currently in floating storage, a 40% increase compared to last year, contributing to the bearish outlook on oil prices.
