Crude oil and gasoline prices surged on Thursday, with May WTI crude rising 3.72% and May RBOB gasoline up 3.08%, as the U.S. naval blockade of the Strait of Hormuz continues to restrict oil supplies from the Middle East. The rally was further fueled by reports suggesting that a U.S.-Iran peace deal could take up to six months, diminishing hopes for a quick resolution to the ongoing conflict. This backdrop, combined with a new all-time high for the S&P 500, signals robust confidence in economic recovery and energy demand.

The blockade has forced Persian Gulf producers to cut output by approximately 6%, exacerbating global oil supply constraints. The International Energy Agency noted that the Iran conflict has shuttered around 13 million barrels per day of global oil supply, while OPEC+ plans to increase output may now be jeopardized by the geopolitical situation. Additionally, Saudi Aramco’s recent price hike for oil to Asia underscores tightening supply dynamics.

Market participants should closely monitor developments in the Strait of Hormuz, as continued supply disruptions could sustain upward pressure on crude prices, impacting both energy stocks and broader market sentiment.

Source: nasdaq.com