Gasoline Hits Near 4-year High

Gasoline futures in the US slipped below $3.70 per gallon, as markets continued to weigh President Donald Trump’s shifting stance on potential strikes on Iran. Still, prices remained near a more than four-year high as elevated uncertainty persisted, with earlier negotiations showing little progress and the Strait of Hormuz still effectively disrupted. The chokepoint, which handles roughly 20% of global oil flows, continues to restrict key crude and refined product shipments. Seasonal demand expectations are also providing support, as the approach of the US summer driving season typically lifts near-term fuel consumption. Meanwhile, US gasoline stockpiles fell for a 13th consecutive week in early May despite a slight increase in production, as refineries continued operating near full capacity and drew on crude feedstock from the SPR to sustain output.

Gasoline increased to 3.76 USD/Gal, the highest since June 2022. Over the past 4 weeks, Gasoline gained 20.64%, and in the last 12 months, it increased 75.58%.

Gasoline futures in the US extended gains to $3.70 per gallon, approaching the four-year high reached in early May, driven by fears of a prolonged energy supply crunch in the Middle East. US President Donald Trump maintained an increasingly hardline stance toward Tehran as negotiations between the US and Iran remained deadlocked, leaving the Strait of Hormuz largely closed. Concerns also intensified after reports that energy facilities in the Persian Gulf were targeted over the weekend. Energy exports from the key region have remained heavily disrupted since early March, causing global oil inventories to decline at a record pace, according to the IEA. Meanwhile, US gasoline stockpiles fell for a 13th consecutive week in early May despite a slight increase in production, as refineries continued operating near full capacity using feedstock supplied from the SPR.