Gasoline prices climbed more than 1% to roughly $2.58 per gallon, extending their recent rally to the highest level since July 2024. The advance is being driven by supply disruptions in the Middle East and continued draws on inventories.
The broader US–Israeli campaign against Iran has now entered its sixth day, keeping markets on edge amid persistent fears of escalation. Investors are assessing the risks of a prolonged US offensive, Tehran’s efforts to widen the conflict, and the effective shutdown of the strategically vital Strait of Hormuz shipping corridor.
In an effort to contain broader energy market shocks, President Trump has proposed providing vessel insurance and naval escorts, while Treasury Secretary Bessent has outlined additional steps aimed at stabilizing energy markets.
At the same time, EIA data showed that US gasoline inventories fell by 1.7 million barrels last week, a sharper draw than the 0.8 million-barrel decline expected by analysts, and the third consecutive weekly drop in stocks.
