It's pulled back this morning ... but the reason it spiked is still sitting on the table.
Trump rejected Iran's offer yesterday. Flat out.
Iran said reopen the Strait, talk nukes later. Trump said no deal without a nuclear agreement. The blockade stays. CENTCOM is briefing him today on strike options.
There is no off-ramp right now.
Tuesday, Trump sat down with the Chevron CEO, Trafigura, Vitol, and Mercuria. Treasury Secretary Bessent hosted. Vance, Kushner, and Witkoff were in the room. The topic ... how to keep the blockade running for months if needed while minimizing impact on American consumers.
That's not a meeting you hold if you're planning to back down.
Brent touched $126 this morning ... highest since Russia invaded Ukraine. 41 Iranian tankers stranded. 69 million barrels bottled up with nowhere to go.
Gas hit $4.30 this morning. Up 5 cents yesterday. Up 21 cents in a week.
Diesel sitting at $5.46.
EIA confirmed it yesterday. Crude inventories down 6.2 million barrels last week. Gasoline down 6.1 million. Total petroleum stocks dropped 17 million barrels in seven days.
We are shipping everything we pull. US crude exports hit a record last week. The world ran out of options and called America.
UAE leaves OPEC tomorrow. First time in nearly 60 years. Summer driving season hasn't started.
$4.30 might look cheap by mid-May.
The Strait doesn't open until Iran gives up nukes. That's the deal. There is no other deal.