FX.co ★ Gasoline Futures Rise

Gasoline futures climbed above $3 per gallon on Friday, building on the previous session’s gains as traders continued to assess the durability of a fragile ceasefire ahead of US-Iran talks this weekend. Israeli strikes in Lebanon led Iran to once again close the Strait of Hormuz, intensifying pressure on diplomatic negotiations. Prime Minister Benjamin Netanyahu asserted that Israeli operations in Lebanon fall outside the scope of the US-Iran truce, while Washington has scheduled talks next week with Israel and Lebanon to push ceasefire efforts forward. Further clouding the outlook, President Donald Trump warned Tehran against imposing transit fees on vessels passing through the Strait and criticized Iran’s handling of energy flows as inadequate. Despite the ongoing geopolitical tensions, the initial ceasefire announcement earlier this week had already sparked a sharp selloff in energy markets, leaving gasoline prices more than 7% lower for the week.