US gasoline futures climbed back above $3.10 per gallon, rebounding from a seven-week low, after reports that Iran had launched missiles at Israel. The strike heightened concerns about the stability of the already fragile US–Iran ceasefire. Iran characterized the attack as a warning in response to Israel’s actions in Lebanon, while Israeli forces intercepted all of the missiles. President Trump urged Iran to return to negotiations and was said to be working to dissuade Israel from mounting a retaliatory strike.
The escalation has increased the risk of a broader military conflict, raising the possibility of further disruptions to Middle Eastern shipping routes and energy flows. Such disruptions would likely exacerbate already tight conditions in global distillate markets.
At the same time, US gasoline inventories rose by more than 3 million barrels in the final week of May, ending a 15-week streak of declines. However, withdrawals of roughly 8 million barrels each from private crude inventories and the Strategic Petroleum Reserve offset some of the improvement in refined product supply.
