Gasoline Futures Follow Oil Lower

US gasoline futures fell about 5% to $3.119 per gallon from $3.286 in the previous session after President Donald Trump paused plans to strike Iranian energy infrastructure for five days following what he described as productive talks, triggering a sharp drop in oil prices. However, Iranian media denied any contact with Washington. Brent crude briefly dipped below $100 per barrel as oil slumped more than 11%. Despite the pullback, gasoline futures remain up over 37% this month, recently hitting their highest level since July 2022, supported by strong spring demand and earlier gains in crude amid the conflict. Supply disruptions linked to the near halt in traffic through the Strait, along with seasonal shifts to costlier summer fuel blends, continue to underpin prices.

US gasoline futures climbed above $3.30 per gallon, hitting their highest level since July 2022, following threats to Middle Eastern energy facilities that could further disrupt supply. President Trump gave Iran 48 hours to fully reopen the Strait of Hormuz or face US strikes on its power infrastructure, while Iran threatened retaliation against key energy plants if Washington acted. Last week, both sides launched a wave of attacks targeting energy infrastructure. Meanwhile, IEA Chief Fatih Birol said he is consulting with governments worldwide and that additional oil stock releases could be considered if needed. This follows a recent major release of emergency stockpiles, while Washington has temporarily lifted sanctions on Iranian oil at sea to ease the supply crunch. With the conflict showing no signs of abating and the closure of the strategic chokepoint, gasoline prices have surged more than 90% so far this year.

US gasoline futures topped $3.20 per gallon, on track for a weekly gain of over 6% and up roughly 30% so far this month, driven by traffic bottlenecks in the Strait of Hormuz. Earlier this week, the conflict in Iran escalated as a series of attacks struck energy infrastructure across the region, heightening fears of deeper supply disruptions. Meanwhile, markets assessed signals that the US may soon lift sanctions on Iranian oil at sea to ease price pressures. Treasury Secretary Scott Bessent noted the move could involve about 140 million barrels and help cap prices over the next 10–14 days. President Donald Trump also said the US has no plans to deploy ground troops, while Benjamin Netanyahu signaled Israel would refrain from additional strikes on Iranian energy facilities. Elsewhere, seasonal demand is adding to the strain as spring travel picks up and refineries switch to costlier summer fuel blends.