Gasoline Futures Halts Rally

Gasoline prices fell about 1% to around $2.60 per gallon, halting its recent bullish run after President Donald Trump announced imminent steps to ease soaring energy costs. Measures under consideration include releasing crude from US reserves, relaxing fuel-blending requirements, and allowing the Treasury to trade oil futures. Despite the drop, gasoline remains on track for a more than 14% weekly gain, the largest since February 2023, as Middle East tensions disrupted global energy traffic by largely closing the Strait of Hormuz. The US-Israeli conflict with Iran showed no signs of abating, with Tehran striking a Bahrain oil facility with missiles and drones, while US and Israeli forces carried out strikes in Iran and across the region. Elsewhere, EIA data earlier this week showed US gasoline stocks fell 1.7 million barrels, exceeding the expected 0.8 million-barrel decline and marking the third consecutive week of drawdowns.

Gasoline prices rose 3% to around $2.61 per gallon, extending their recent bullish run to the highest level since May 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.