US Gasoline Futures Highest Since July 2022

US gasoline futures climbed to around $3.07 per gallon, the highest since July 2022, supported by stronger spring demand and elevated crude prices, which have repeatedly moved above $100 per barrel amid the ongoing conflict in Iran. Brent has held near $104, with energy markets sharply higher since the war began due to the effective closure of the Strait of Hormuz, a key route for global oil and LNG flows. The disruption has driven a broad surge in commodities and pushed US pump prices to multi year highs, raising concerns about inflation and economic spillovers. Seasonal factors are also adding pressure as demand rises during spring travel and refineries switch to more expensive summer fuel blends. To ease supply strains, the US plans to release 172 million barrels from reserves as part of a wider global effort, though sustained high prices could weigh on consumer sentiment and the political outlook.

US gasoline futures rose to around $3.10 per gallon on Tuesday, resuming their rally to hover at their highest level since July 2022, as investors remained focused on developments in the Middle East. Prices had fallen more than 1% on Monday amid hopes that more tankers might be able to pass through the Strait of Hormuz, while signals that rich countries could release additional stockpiles also helped improve sentiment. Although traffic through the strait remains near a standstill due to the conflict, several tankers have safely navigated the route over the weekend. India is working to secure safe transit for six vessels, while several other countries are reportedly engaging in diplomatic back-channel discussions with Iran to ensure the protection of their ships. Treasury Secretary Scott Bessent said on Monday the US is allowing Iranian oil tankers to transit the waterway. Meanwhile, several countries rejected President Trump's call to send warships to escort vessels through the strait.

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%.