US gasoline futures have climbed above $2.70 per gallon, the highest level since April 2024, as escalating conflict in the Middle East threatens global energy flows. Prices have surged about 18% this week, marking the strongest weekly rally since 2022.
The disruption is focused on key shipping routes such as the Strait of Hormuz, a critical passage for crude oil exports. With supplies tightening, refiners in Asia are finding it increasingly difficult to secure crude and may be forced to cut fuel production. Adding to the strain on global markets, China has instructed major refiners to suspend exports of diesel and gasoline in order to safeguard domestic supply.
In an effort to contain price pressures, the Trump administration is moving to ease restrictions on India’s purchases of Russian oil. At the same time, Qatar’s energy minister, Saad al-Kaabi, has warned that exporters in the Persian Gulf could halt shipments altogether if the conflict persists.
On the supply side in the US, the latest EIA data showed gasoline inventories fell by 1.7 million barrels, marking the third consecutive weekly drawdown.
