Strait remains closed, prices rise
May 1, 2026
Prices were mixed yesterday as the war in the Middle East continues and the Strait of Hormuz is essentially shut down. Some of the pullback off the highs yesterday was profit taking on the news that there is a law that the president can only commit acts of war for 60 days when it begins without congressional approval. Anything beyond requires congressional approval. It turns out that day 60 is today. There is uncertainty around all this, and we all know markets do not like uncertainty. There are questions that if military action was resumed what would actually happen.
With this 60-day law staring us in the face the news seems very quiet this morning. I sense a bit of war fatigue as many people are not in favor of this war and want the US out. Traders will be watching to see if there is any breaking news on any of these fronts. We do know that the blockade will continue and the Strait of Hormuz will be essentially closed so that fact offers underlying support for prices. Seeing more profit taking and a pullback has some potential here in the near term as prices have rallied strong and fast and may need a pullback or a pause.