**Crude Oil and Gasoline Prices Surge Amid Geopolitical Tensions**
On Monday, June WTI crude oil closed at $108.82 per barrel, up 3.07%, marking a three-week high, while June RBOB gasoline rose to $3.75, reflecting a 4-year nearest-futures high. The increase in prices coincided with ongoing tensions over the US-Iran conflict, which has kept the Strait of Hormuz largely closed, tightening global oil supplies.
Geopolitical dynamics intensified further as Pakistan deployed 8,000 troops and military assets to Saudi Arabia in a mutual defense effort. Additionally, an International Energy Agency report indicated a significant reduction in global oil inventories, down about 4 million barrels per day in March and April. Goldman Sachs estimates that the ongoing conflict has impacted Persian Gulf oil output by approximately 14.5 million barrels per day, draining nearly 500 million barrels from global stockpiles.
In the United States, crude oil inventories were reported to be 0.3% below the five-year seasonal average, while active US oil rigs saw a modest increase to 415 as of May 15, slightly above the 4.25-year low.
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