Gasoline futures for New York Harbor delivery climbed above $3.30 per gallon in April, the highest level in nearly four years, as the prolonged conflict in the Middle East deepened supply shortages for refiners. Shortly after US President Trump announced that the blockade of the Strait of Hormuz would remain in place until a deal is reached, Iran attacked and then seized multiple commercial vessels near the chokepoint.
These developments reinforced expectations that tanker traffic through the Strait will stay largely suspended in the near term, curbing exports from a region that typically ships about 20 million barrels per day of crude oil and refined products. The US blockade of Iranian crude also transmitted supply pressures to China’s independent “teapot” refiners, which had been relatively insulated from the conflict until mid-April thanks to their heavy reliance on Iranian feedstock.
In line with these disruptions, US gasoline inventories fell by 4.6 million barrels in the week ending April 17th, marking a tenth consecutive weekly draw.
