US gasoline futures extended their rally above $3.70 per gallon, moving closer to the four-year high reached in early May, as fears mounted over a prolonged energy supply crunch in the Middle East. President Donald Trump continued to take an increasingly hardline stance toward Tehran, with US–Iran negotiations remaining deadlocked and the Strait of Hormuz largely closed. Market anxiety was further stoked by reports that energy facilities in the Persian Gulf were attacked over the weekend.
According to the IEA, energy exports from this key region have been heavily disrupted since early March, driving global oil inventories lower at a record pace. At the same time, US gasoline stockpiles declined for a 13th consecutive week in early May, even as production edged higher, with refineries running near full capacity and relying on feedstock supplied from the SPR.
