US-Iran Tensions Send Crude Oil Prices Soaring
Crude oil prices surged on Thursday due to escalating tensions between the US and Iran. The November WTI crude oil (CLX26) closed up +2.45 (+2.71%) and November RBOB gasoline (RBX26) closed up +0.1421 (+4.36%).
The deadlock in peace talks has kept the Strait of Hormuz from fully reopening, tightening global oil supplies. The US is sending a third aircraft carrier strike group and an additional 10,000 troops to the Middle East, with President Trump indicating he expects to resume bombing Iran by the end of November.
Energy prices also received support from lower gasoline inventories in the EIA report and Russia's extension of its diesel export ban. However, JPMorgan Chase noted that Middle East crude exports have rebounded to 17.5 million bpd, or about 98% of pre-war levels.