WTI jumps 2.25% and RBOB climbs 3.97% after reported strike on cargo ship in the Strait of Hormuz

Oil and gasoline prices rebounded and surged after reports that a cargo vessel was hit by an unknown projectile off the coast of Oman in the Strait of Hormuz. The move followed an earlier slide to a 4month low as flows resumed through the reopened strait, easing supply worries. WTI rose 2.25% and RBOB gasoline gained 3.97%, as the incident was treated as a sudden risk of geopolitical supply disruption. The International Energy Agency has cut its global oil demand outlook, but the short-term shock outweighed signs of easing fundamentals.