Gasoline Jumps on US Hormuz Blockade Plans

Gasoline futures jumped more than 4% above $3.10 per gallon on Monday, recouping losses from last week, after the US revealed plans to block the Strait of Hormuz amid stalled negotiations with Tehran. The US Central Command said it will begin enforcing a maritime blockade on all vessels entering and leaving Iranian ports from April 13. The measure will cover ships of all nations accessing ports in the Arabian Gulf and Gulf of Oman, while transit through the Strait to non-Iranian destinations will remain unaffected. At the same time, reports suggest that Donald Trump is weighing renewed airstrikes on Iran after previously agreeing to a two-week ceasefire. These developments have revived concerns that the conflict could drag on longer than expected, increasing the risk of deeper global supply disruptions and adding fresh volatility to energy markets.

Gasoline futures rose above $3 per gallon on Friday, extending gains from the previous session, as markets continued to gauge the stability of the fragile ceasefire ahead of US-Iran talks this weekend. Israeli strikes on Lebanon prompted Iran to shut the Strait of Hormuz again, adding pressure to diplomatic efforts. Prime Minister Benjamin Netanyahu stated that operations in Lebanon fall outside the scope of the US-Iran truce, while Washington has scheduled talks next week with Israel and Lebanon to advance ceasefire discussions. Further undermining the ceasefire, President Donald Trump warned Tehran against imposing fees on vessels transiting the Strait and criticized Iran’s management of energy flows, calling it insufficient. Despite ongoing tensions, the earlier ceasefire announcement this week triggered a selloff in energy markets, with gasoline down more than 7% on the week.

Gasoline futures rose to $3.08 per gallon on Thursday, following a sharp decline in the previous session, as the two-week ceasefire in the Middle East appeared to be unraveling following Israeli strikes on Lebanon. A wave of Israeli airstrikes swept across Lebanon on Wednesday, prompting Iran to halt the passage of oil tankers through the Strait of Hormuz, though the White House denies the waterway is closed. Iran’s Parliament speaker said three key clauses of a 10-point ceasefire proposal were violated ahead of negotiations scheduled for later this week in Pakistan, adding that under such conditions, a bilateral ceasefire or talks were no longer reasonable. The closure of the strait, which connects the Persian Gulf to the world market, has triggered the biggest oil supply disruption in history. Analysts also noted that even if transit through the waterway resumes, the restoration of energy supplies will not be immediate.