Gasoline Hits 3-1/2-year High

Gasoline increased to 3.07 USD/Gal, the highest since July 2022. Over the past 4 weeks, Gasoline gained 60.26%, and in the last 12 months, it increased 40.67%.

US gasoline futures climbed further to around $3.08 per gallon, their highest level since July 2022, as traders assess how long the Middle East war might continue to disrupt global supply. The conflict has now entered its third week, putting oil infrastructure at risk and keeping the Strait of Hormuz shut. Last Friday, the US struck military sites on Kharg Island, a crucial outpost in the Persian Gulf from which Iran exports around 90% of its oil, and warned that the island could also be hit if Tehran interferes with transit through the strait. Meanwhile, the President Trump has asked other countries to help ships pass through the strait, though no formal agreement has been reached yet. The IEA said on Sunday that Asia and Oceania will be the first to receive shipments from its record emergency oil release as regional inventories are running low.

US gasoline futures held above $2.90 per gallon, remaining near their highest level since July 2022, as investors braced for further upheaval in the Middle East. President Donald Trump threatened Iran with additional attacks after Iran’s new Supreme Leader Mojtaba Khamenei warned that the Strait of Hormuz would remain closed and could open other fronts if US and Israeli strikes continue. Meanwhile, the US is trying to ease supply concerns by issuing a 30-day license allowing countries to buy Russian oil and petroleum products stranded at sea. Treasury Secretary Scott Bessent also called for an international coalition to escort tankers through the Strait of Hormuz “as soon as militarily possible.” This follows coordinated IEA efforts to release unprecedented reserves, which have done little to slow the energy rally. For the week, gasoline is on track for a second consecutive gain.