US-Iran Tensions Flare Ahead of Trump-Xi Meeting | Balance of Power 05/11/2026

Watch on YouTube ↗  |  May 11, 2026 at 23:49  |  47:55  |  Bloomberg Markets
Speakers
Tom Kloza — Chief Energy Advisor, Gulf Oil
Romaine Bostick — Anchor, Bloomberg

Summary

The episode covers rising US-Iran tensions with the Strait of Hormuz closed, pushing oil and gasoline prices higher. Tom Kloza warns that reopening the Strait is the only lever to reduce fuel prices, expecting gasoline to hit $5 and diesel to break records. The show also previews President Trump's summit with Xi Jinping, the Fed transition from Powell to Warsh, and political reactions to the gas tax holiday proposal.

  • US-Iran ceasefire described as 'on life support' by President Trump.
  • Strait of Hormuz closure is the key driver of elevated fuel prices.
  • Tom Kloza expects gasoline could reach $5/gallon and diesel to break records.
  • President Trump floats a federal gas tax holiday as short-term relief.
  • Trump meeting with Xi Jinping in Beijing; Taiwan must not be a bargaining chip, says Rep. Tokuda.
  • Fed Chair Powell's term ends; Kevin Warsh expected to be confirmed.
  • Moderna shares spike on hantavirus vaccine development but give back gains.
  • Political panel discusses redistricting and the cost of the White House ballroom renovation.
Trade Ideas
Tom Kloza Chief Energy Advisor, Gulf Oil 18:49
Strait closure pushes oil/gasoline prices up
If the Strait of Hormuz remains closed, oil and gasoline prices will rise significantly because reopening the Strait is the only major lever to reduce prices. Gasoline could reach $5 per gallon or higher this summer, and crude oil currently around $100 per barrel is predicated on a June reopening that may not happen.
WTI UGA HIGH
Tom Kloza Chief Energy Advisor, Gulf Oil 22:04
Diesel prices will break records
Diesel prices are about to go ballistic due to supply tightness, with the record of about 580 (likely cents per gallon or barrel equivalent) likely to be exceeded. This is driven by high demand for freight and farming, especially in the Midwest, and insufficient supply.
Diesel (Heating Oil) HIGH
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This Bloomberg Markets video, published May 11, 2026, features Tom Kloza discussing WTI, UGA, Diesel (Heating Oil). 2 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Tom Kloza  · Tickers: WTI, UGA, Diesel (Heating Oil)