FX.co ★ US Gasoline Futures Rise to 7-Week High

U.S. gasoline futures have surged to approximately $2.20 per gallon, marking a seven-week high. This increase is driven by heightened geopolitical tensions and strong travel demand as Memorial Day approaches. The spike in prices mirrors a general rise in energy commodities, following reports that Israel may be planning an offensive against Iranian nuclear sites. Such developments raise concerns about possible disruptions in oil shipments from the Middle East, especially through the pivotal Strait of Hormuz. In the event of an attack, Iran, a significant OPEC member, might retaliate, thereby amplifying supply uncertainties. Although U.S. crude oil inventories experienced an increase last week, stocks of gasoline and distillates declined, based on data from the American Petroleum Institute (API). On the demand front, the American Automobile Association (AAA) anticipates a record-breaking 45.1 million Americans will travel at least 50 miles during the Memorial Day weekend, with 39.4 million choosing to drive. This marks an increase of one million drivers compared to last year.