US gasoline futures climbed more than 4% to above $3.15 per gallon, rebounding sharply from a six-week low of $3.03 on May 29. The rally followed reports that Iran would halt back-channel message exchanges with the United States in response to Israel’s intensified military operations in Lebanon. Earlier, Foreign Ministry spokesperson Esmail Baghaei had said Iran remained in contact with Washington, though it did so with “distrust.”
The latest escalation has dimmed hopes for an interim peace arrangement, even as President Donald Trump maintained that talks with Tehran would “work out well,” despite renewed clashes near the Strait of Hormuz. Adding further support to gasoline prices, US inventories fell for a 15th straight week in May. Refineries continued to run at elevated utilization rates, drawing on crude from strategic reserves, while some capacity was redirected toward producing diesel and jet fuel to ease broader supply concerns.
