FX.co ★ US Gasoline Futures Extend Gains to $3.2

US gasoline futures climbed toward $3.20 per gallon, the highest level since July 2022, supported by stronger seasonal demand and rising crude prices amid the ongoing Iran conflict. Brent crude surged to $108 after Iran reported attacks on some of its energy infrastructure and issued threats of retaliation against oil and gas facilities in neighboring countries. The strikes mark a further escalation in a crisis that has already disrupted global oil flows, with traffic through the Strait of Hormuz—through which roughly one-fifth of the world’s oil and LNG passes—now almost completely halted. The resulting supply squeeze has driven US pump prices to multi-year highs and intensified inflation concerns. Seasonal dynamics are adding to the pressure, as spring travel boosts consumption and refineries transition to more expensive summer-grade gasoline. In an effort to ease supply strains, the US plans to release 172 million barrels from its reserves as part of a broader international initiative, though persistently elevated prices could dampen consumer confidence and carry significant political implications.