May WTI crude oil surged 4.79% on Tuesday, closing at $92.66 per barrel, while RBOB gasoline rose 5.82% to $3.15 per gallon. This rebound comes amid escalating tensions in the Middle East, particularly following reports that Saudi Arabia and the UAE are moving closer to involvement in the ongoing conflict with Iran. The potential for increased military engagement has raised concerns about supply disruptions, especially as the Strait of Hormuz, a critical shipping lane, remains effectively closed.

The IEA highlighted severe damage to over 40 energy sites across the region, further straining global supply chains. Goldman Sachs warns that if the situation persists, crude prices could soar past the 2008 highs of nearly $150 per barrel. Conversely, OPEC+ plans to increase output by 206,000 bpd in April may be hindered by the ongoing conflict, complicating the supply outlook.

Market professionals should monitor geopolitical developments closely, as continued instability could lead to significant price volatility and impact energy sector investments.

Source: nasdaq.com