Oil Prices SURGE After Trump's warning to Iran

• Oil prices (West Texas Crude) jumped nearly 7% today, settling just below $85/barrel, due to renewed Middle East tensions.
• President Trump's warning to Iran, following an attempted attack on American forces, is a key driver of the price surge.
• Physical inventory markets are very tight, with Cushing storage capacity significantly depleted (under 20 million barrels from a high of 70-90 million).
• Refinery runs are at 97% capacity, and the U.S. is adapting by exporting light crude and importing Venezuelan crude, but volatility remains high.
• The U.S. Oil & Gas Association President notes a 'generational shift' where the Strait of Hormuz may matter less in the long term, but short-term pain for consumers is evident with gas prices above $4.

Oil prices surged nearly 7% today after President Trump issued warnings to Iran, stating the regime is 'going to get a beating' following an attempted attack on American forces. This geopolitical tension, combined with tight physical inventory markets, including low Cushing storage capacity, is driving a risk premium back into oil prices, leading to increased volatility and higher gas prices for consumers.