Crude oil and gasoline prices rose today, with crude hitting a 4-month high and gasoline reaching a 2-month high. President Trump’s threats to Iran and a decrease in crude inventories supported the price surge, although a strong dollar limited gains.

Trump’s call for Iran to negotiate a nuclear deal or face a US attack pushed crude oil prices higher. The potential conflict could disrupt oil supplies from OPEC’s fourth-largest producer, adding to the bullish sentiment in the market.

Russia-Ukraine tensions are also contributing to the rise in crude prices, with Russia indicating a lack of progress in peace talks. This ongoing conflict is likely to keep restrictions on Russian crude in place, further supporting oil prices in the market.

The IEA has revised down its global crude surplus estimate for 2026, while the EIA has raised its US crude production estimate for the same year. These changes reflect the current dynamics in the oil market and could impact future price movements.

Recent attacks on Russian refineries by Ukrainian forces have limited Russia’s crude oil export capabilities, adding to supply concerns in the market. The escalation in attacks and sanctions on Russian oil companies have further tightened global oil supplies.

The latest EIA report showed mixed results for crude oil and products, with unexpected declines in crude inventories and smaller-than-expected builds in gasoline supplies. However, distillate inventories rose unexpectedly, presenting a more bearish outlook for the market.

US crude oil inventories were below the seasonal 5-year average, while gasoline and distillate inventories were above the average. Crude oil production saw a slight decrease, indicating some balancing in supply dynamics in the market.

The number of active US oil rigs increased slightly, but remains near a multi-year low. The decline in rig count over the past few years reflects the challenging environment for the oil industry, with implications for future production levels.

Overall, geopolitical tensions, supply dynamics, and market reports continue to influence crude oil prices, with various factors contributing to the current bullish sentiment in the market.

Read more at Yahoo Finance: Crude Prices Rally on Iran Tensions