Gasoline Turns Negative

US gasoline futures fell past $3.1 per gallon on Wednesday as a strategic 60-day waiver of the Jones Act and a massive 172 million-barrel reserve release provided a late-session buffer against escalating Middle Eastern supply risks. This downward correction follows President Trump’s decision to temporarily suspend the 1920 shipping law to allow international tankers to move fuel, natural gas, and fertilizer freely between domestic ports to stabilize the internal market. Industry analysts note that while the waiver eases transport bottlenecks, US refineries still face a structural mismatch as they are optimized for the heavy Middle Eastern crude currently blocked by the conflict. Despite the seasonal transition to more expensive summer blends and a 6.16 million-barrel build in crude stocks, the aggressive federal intervention to secure critical supply chains has neutralized the immediate impact of retaliatory threats from Tehran.

US gasoline futures rose toward $3.20 per gallon, the highest since July 2022, driven by stronger spring demand and higher crude prices amid the ongoing Iran conflict. Brent surged to $108 after Iran reported attacks on some of its energy facilities and threatened retaliation against oil and gas sites in neighboring countries. The strikes represent a further escalation in a conflict that has disrupted global oil supplies, with traffic through the Strait of Hormuz, which carries about a fifth of the world’s oil and LNG, all but halted. The supply squeeze has pushed US pump prices to multi-year highs and fueled inflation concerns. 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 above $3.1 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 $101, 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.