Gasoline Futures Rise

Gasoline futures rose above $3.30 per gallon on Tuesday, reaching its highest level since July 2022, as investors balanced President Trump’s deadline for Iran against last-minute ceasefire efforts. Trump warned he would strike Iran’s energy and transport infrastructure within 24 hours if the Strait of Hormuz is not reopened. This overshadowed reports of a 45-day ceasefire proposal, put forward by mediators in US-Iran talks as a near-deadline attempt to ease tensions. Iran rejected the temporary truce, opting instead for a permanent settlement and submitting its own conditions through mediators. Trump also dismissed the plan as “not good enough,” but acknowledged it as a significant step. Separately, OPEC+ agreed to increase output by 206,000 bpd in May, although disruptions from the Strait’s closure and damaged infrastructure could limit how much supply reaches global markets.

US gasoline futures eased to around $3.20 per gallon on Monday, as traders balanced reports of renewed Middle East ceasefire efforts against a fresh ultimatum from President Donald Trump on Iran. The US, Iran, and regional mediators were said to be discussing a potential 45-day truce, though prospects for even a partial deal within the next 48 hours remained slim. Simultaneously, Iran said Iraq would be exempt from Strait restrictions, potentially supporting oil flows, with SOMO confirming that Iraqi cargoes can be loaded without limits. Meanwhile, President Trump warned on social media of severe consequences if Iran fails to reopen the passage by Tuesday, including possible strikes on key infrastructure such as power plants and bridges. Elsewhere, OPEC+ agreed to raise output by 206,000 bpd in May, although closed Strait routes and damaged infrastructure may constrain how much supply reaches global markets.

US gasoline futures dipped to around $3.20 per gallon on Monday but remained near their highest level since July 2022, after President Donald Trump intensified pressure on Tehran. He warned via social media that Iran could face significant repercussions, including strikes on critical infrastructure such as power plants and bridges, if the Strait of Hormuz remains closed. His remarks follow last week’s national address, in which he suggested the conflict might continue for another two to three weeks. Meanwhile, OPEC+ announced plans to boost output by 206,000 barrels per day in May, though questions remain about how the additional supply will reach global markets while the Strait is blocked. The group also cautioned that repairing infrastructure damaged by Iranian attacks is both costly and slow, likely keeping overall supply constrained.