US gasoline prices hovered around $3.38 per gallon, holding near a two‑month high as markets balanced renewed US–Iran diplomatic efforts against intensifying military exchanges. Iran reported receiving a 10‑day ceasefire proposal from mediators designed to preserve the interim agreement and pave the way for a durable peace deal. This diplomatic initiative came after another night of US airstrikes on Iranian cities and Iranian attacks on US military assets across the region.
Against this backdrop, shipping traffic through the Strait of Hormuz slowed to nearly a standstill, heightening concerns over supply security. Further pressure emerged after Yemen’s Houthi militants threatened to block maritime traffic to and from Saudi Arabia via the Red Sea. At the same time, Ukrainian strikes on Russian energy infrastructure continued to disrupt refinery operations, while stronger margins for diesel and jet fuel encouraged refiners to scale back gasoline production. Reflecting these dynamics, average US retail gasoline prices at the pump rose back above $4 per gallon.
