On Thursday, the closest U.S. crude oil delivery contract registered an unprecedented premium compared to the following month’s contract, coming after President Donald Trump’s declaration to continue military strikes on Iran for an extended duration. West Texas Intermediate futures for May delivery climbed over 11%, settling at $111.54 per barrel. This price was more than $13 higher than the June price of $98.04 per barrel. This represents the most significant differential between the front and second-month contracts in recorded history, going back to 1983. Prior to Trump’s national address concerning the conflict, U.S. crude oil prices had dropped by 1.24% on Wednesday, closing at $100.12 a barrel. Bob McNally, president of Rapidan Energy, noted that Trump’s earlier hints about a swift conclusion to the conflict had successfully pushed prices down. @CL.1 YTD mountain WTI year to date ‘The market believed this crisis couldn’t persist,’ McNally explained. However, during Trump’s speech, as it became evident that a rapid resolution to the conflict was unlikely, prices began to climb. ‘I suspect many short-sellers were anticipating Trump to announce some form of ceasefire, and they were closing out their positions,’ McNally stated. ‘The speech proved bullish, leading to short covering in the May contract at settlement.’ Additionally, on Thursday, the immediate spot price for physical shipments of Brent crude oil surged to $141.36, reaching its highest point since the 2008 financial crisis, as reported by S&P Global, which monitors this data. This spot price indicates the demand for Brent oil scheduled for delivery within the next 10 to 30 days. The elevated cost for prompt oil deliveries highlights the current severe constriction in physical supply, primarily caused by the substantial disruption following Iran’s closure of the Strait of Hormuz.