Oil jumps above $117 as Trump's Hormuz deadline approaches

Key Points:

• Oil prices surged sharply, with U.S. crude reaching as high as $117.63 per barrel before settling around $112, marking the highest settlement since June 2022, amid tensions over Iran and the Strait of Hormuz deadline set by President Trump.
• Stock markets experienced significant volatility, with the S&P 500 and Nasdaq recovering from early losses to close slightly higher, while the Dow ended modestly lower after steep intraday declines.
• Pakistan's Prime Minister Shehbaz Sharif requested a two-week delay to Trump's deadline and for Iran to reopen the Strait of Hormuz temporarily, prompting a pending response from the White House.
• Gasoline and diesel prices remain elevated, with the U.S. Energy Information Administration forecasting retail gasoline prices to peak near $4.30 per gallon and diesel above $5.80 per gallon in April, driven by ongoing geopolitical risks.
• Analysts warn of two possible scenarios: a fragile détente with controlled escalation or a prolonged conflict leading to sustained high energy prices, with current U.S. signals suggesting the latter, increasing market uncertainty ahead of the deadline.