US gasoline futures climbed more than 3% to about $3.10 per gallon on Tuesday, recovering part of the previous session’s sharp losses as crude prices rebounded following fresh geopolitical tensions. The move came after Iranian deputy parliament speaker Ali Nikzad dismissed the prospect of talks with Washington and said traffic through the Strait of Hormuz would not return to normal. His remarks followed former President Donald Trump’s decision on Monday to delay a planned strike on Iran’s energy infrastructure by five days, citing ongoing negotiations.
Meanwhile, Israel continued its attacks, and reports suggested that US Gulf allies are edging closer to joining the conflict, with Saudi Crown Prince Mohammed bin Salman said to be nearing a decision on whether to participate in the strikes. Against this backdrop, gasoline futures are now up more than 30% for the month and recently touched their highest level since July 2022, supported by supply disruptions in the Strait of Hormuz and the seasonal switch to more costly summer-grade fuel blends.
