**WTI Crude Oil and Gasoline Prices Surge Amid Middle East Tensions**
On Tuesday, May WTI crude oil closed up $2.52 (2.81%) at $92.06, while May RBOB gasoline increased by $0.0930 (2.98%). The price recovery follows heightened tensions due to Iran’s ambiguous participation in ceasefire negotiations with the U.S. in Pakistan, which expire Wednesday.
The ongoing closure of the Strait of Hormuz, a critical transit route for about 20% of the world’s oil and gas, has forced Persian Gulf producers to cut output by roughly 6%. As a result, the International Energy Agency reported that approximately 13 million barrels per day of global oil supply has been disrupted due to the conflict and the blockade initiated by the U.S., which began on April 10. This blockade could exacerbate global oil and fuel shortages as it limits Iran’s crude exports and increases pressure on energy prices.
