US gasoline futures rose above $3.30 per gallon, their highest level since July 2022, after renewed threats against energy facilities in the Middle East raised fears of deeper supply disruptions. President Trump gave Iran 48 hours to fully reopen the Strait of Hormuz or face US strikes on its power infrastructure, while Tehran warned it would retaliate against key energy assets if Washington followed through. The latest escalation comes after both sides launched a series of attacks on energy infrastructure last week.
At the same time, IEA Executive Director Fatih Birol said he is consulting with governments around the world and that further releases of strategic oil reserves remain an option if required. This comes on the heels of a recent large-scale drawdown of emergency stockpiles, as Washington has also temporarily eased sanctions on Iranian oil shipments at sea in an effort to alleviate the supply squeeze.
With the conflict showing no sign of easing and the Strait of Hormuz—one of the world’s most critical energy chokepoints—effectively shut, gasoline prices have now surged more than 90% since the start of the year.
