WTI crude oil prices surged on Tuesday, closing up 2.81% at $92.36 per barrel, while RBOB gasoline rose 2.98% to $3.22 per gallon. The rally followed uncertainty surrounding Iran’s participation in ongoing U.S. negotiations, with tensions in the Middle East contributing to supply concerns. The imminent expiration of a U.S.-Iran ceasefire, coupled with a blockade of vessels in the Strait of Hormuz, has led to production cuts of approximately 6% among Persian Gulf oil producers, intensifying fears of global energy shortages.

The International Energy Agency (IEA) reported that the ongoing conflict has shuttered about 13 million barrels per day of global oil supply, with OPEC+ struggling to restore production levels amid these geopolitical tensions. Additionally, the U.S. military’s preparations to enforce a blockade could further constrain oil exports, exacerbating the supply-demand imbalance in the market.

Market professionals should closely monitor developments in the Strait of Hormuz and the U.S.-Iran negotiations, as any escalation could lead to significant volatility in energy prices and impact broader market sentiment.

Source: nasdaq.com