US gasoline futures climbed to about $3.30 per gallon, up from roughly $3.25 on Thursday, as traders awaited details of a new US initiative to further isolate Iran’s economy amid ongoing conflict that is disrupting energy exports from the Middle East. President Donald Trump announced plans for an economic package aimed at increasing pressure on Iran, potentially enlisting China, the largest buyer of Iranian crude, in these efforts.
Supply concerns were compounded by Russia’s war in Ukraine. Ukrainian strikes on Russian refineries have tightened fuel supplies, triggering shortages and renewed rationing in several areas. At the same time, US gasoline refining margins have surged 86% since the conflict began, underscoring the limited spare capacity and flexibility among refiners.
At the retail level, average pump prices for regular gasoline remained above $4 per gallon in most US regions, with some areas seeing prices exceed $5. In response, the Environmental Protection Agency plans to end summer gasoline blend requirements ahead of schedule to help alleviate costs. As of August 20, the national average gasoline price stood at $4.10 per gallon.
