Gasoline Hits 9-week High

US gasoline futures rose above $3.48 per gallon, near the highest level since the end of May, as the US-Iran conflict escalated to the Bab el-Mandeb Strait, fueling concerns over further disruptions to energy supply. Nearing a second consecutive week of strikes, a new front in the conflict opened in the Red Sea after President Donald Trump said Iran would be held responsible for any further attacks, following claims by Iran-backed Houthi rebels of strikes on two Saudi oil tankers. Tankers have increasingly avoided the Bab el-Mandeb Strait, raising the risk of another disruption to a key global shipping route. Adding to the pressure, earlier Ukrainian strikes on 24 out of 34 largest Russian refineries, and US refineries running at 96.1% of their capacity, further weighed on refined supply outlook. Still, fuel supplies in Russia showed signs of improving after Ukraine shifted attacks away from major oil refineries toward maritime targets.

Gasoline increased to 3.49 USD/Gal, the highest since May 2026. Over the past 4 weeks, Gasoline gained 20.88%, and in the last 12 months, it increased 65.17%.

US gasoline prices rose to around $3.45 per gallon, near their highest level since late May, as concerns over broader supply disruptions in the Middle East intensified. Iran-backed Houthi militants claimed attacks on two Saudi oil tankers, heightening fears of further disruptions to global oil flows as risks in the Red Sea added to those in the Strait of Hormuz. President Trump warned of strikes on Iranian infrastructure if shipping through the strait is attacked. Attacks on the Caspian Pipeline Consortium's Black Sea terminal also fueled supply concerns. Limiting some gains, fuel supplies in Russia showed signs of improving after Ukraine shifted attacks away from major oil refineries toward maritime targets. Meanwhile, EIA data showed US gasoline inventories increased by 0.765 million barrels in the week ended July 17, recovering from the previous week but remaining 7% below the five-year seasonal average.