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MarketsAI Desk•1 views

U.S. Crude Oil Hits Record Monthly Spread Over Iran War

On Thursday, U.S. crude oil futures set a record spread between May and June contracts, with May jumping 11% to $111.54 per barrel. This followed President Trump's speech suggesting a prolonged Iran war, altering market hopes for a swift resolution. Brent crude spot prices hit $141.36, a multi-year high, driven by supply fears after Iran closed the Strait of Hormuz. Analysts cited significant short covering by traders who anticipated a ceasefire. The events highlight acute physical supply tightness in global oil markets. Price volatility underscores sensitivity to Iran war developments and supply risks.

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U.S. Crude Oil Hits Record Monthly Spread Over Iran War

U.S. crude oil futures recorded the largest-ever premium for the May delivery contract over June on Thursday, following President Donald Trump's remarks on the Iran war and supply disruption concerns.

Historic WTI Spread

  • May WTI contract rose 11% to close at $111.54 per barrel.
  • June WTI contract settled at $98.04 per barrel.
  • The spread exceeded $13.50, the biggest since 1983 data tracking began.

Trump Speech Impact

  • Prices surged during Trump's national address, reversing earlier declines.
  • Market expectations shifted from a quick war end to prolonged conflict.
  • Bob McNally of Rapidan Energy noted short covering in May contracts as traders adjusted positions.

Brent Crude Surge

  • Brent spot price reached $141.36 per barrel, highest since 2008.
  • Reflects tight physical supply due to Iran's Strait of Hormuz closure.

Market Dynamics

  • Supply disruption from Hormuz has constrained global oil availability.
  • Short-term trading amplified volatility amid geopolitical uncertainty.
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