US gasoline futures held above $2.90 per gallon, extending a two-day rally and trading near their highest level since July 2022, as investors braced for further instability following Iran’s vow to keep the strategic Strait of Hormuz closed. Iran’s new Supreme Leader, Mojtaba Khamenei, warned that Tehran could open additional fronts if US and Israeli strikes persist, while reports indicate Iran has begun laying mines in the waterway, further elevating shipping risks.
At the same time, President Donald Trump stated that preventing Iran from developing nuclear weapons and curbing its regional influence is a higher priority than concerns about oil prices. Since the conflict began, tankers have been unable to load in the Gulf, disrupting roughly 20% of global oil trade. The IEA has described it as the largest disruption to global oil output on record, and its recent efforts to rein in energy costs have done little to cool the ongoing rally. For the week, gasoline is on track for a second consecutive gain.
