Gasoline Prices Advances Further

Gasoline prices rose more than 1% to around $2.58 per gallon, extending their recent bullish run to the highest level since July 2024, supported by Middle East supply disruptions and ongoing inventory drawdowns. The broader US-Israeli campaign against Iran has entered its sixth day, keeping markets on edge amid fears of further escalation, as investors weigh the prospect of an extended US offensive, Tehran’s attempts to broaden the conflict, and the effective closure of the critical Strait of Hormuz shipping route. To help limit wider energy shocks, President Trump proposed vessel insurance and naval escorts, while Treasury Secretary Bessent outlined additional measures to stabilize energy markets. Meanwhile, EIA data showed US gasoline stocks fell by 1.7 million barrels last week, larger than the expected 0.8 million-barrel decline, marking the third consecutive week of drawdowns.

Gasoline prices rose to around $2.50 per gallon, staying near their highest level since July 2024, as ongoing supply disruptions in the Middle East, outweighed US plans to insure tankers in the Strait of Hormuz. President Donald Trump said the US International Development Finance Corporation would insure vessels to help maintain energy and trade flows, with naval escorts ready if needed. Still, uncertainty persists as hostilities entered a fifth day, with Israeli and US strikes on Iran prompting retaliatory attacks on regional energy infrastructure. Iraq has also cut roughly half of its crude output due to storage limits and blocked exports, risking a halt of nearly 3 million bpd if shipments do not resume. Saudi oil giant Aramco is seeking to redirect some exports through the Red Sea to bypass the Strait of Hormuz. Elsewhere, OPEC+ recently announced it would resume output increases after a Q1 pause, planning a 206,000 bpd rise in April.

Gasoline prices surged 3.4% to around $2.46 per gallon, hitting their highest level since July 2024, as evolving tensions in the Middle East continued to stoke fears of supply disruptions. Iran on Monday declared the closure of the Strait of Hormuz, a vital chokepoint through which roughly 20% of the world’s daily oil supply is shipped, and warned that it would set ablaze any ship attempting to transit the strategic waterway amid escalating regional tensions. Meanwhile, executives at state-owned energy firms say officials have assured major importers that Beijing is working to keep traffic moving through Hormuz, underscoring China’s determination to protect energy supplies amid rising regional tensions. In a bid to calm markets, eight OPEC+ nations announced plans to boost output by more than 200,000 barrels per day starting in April, ending a pause in production increases in the first quarter.