FX.co ★ Gasoline Hits Highest Since July 2022

Gasoline futures surged 10% to above $3 per gallon on Monday, reaching their highest level since July 2022, as the escalating conflict in the Middle East and mounting supply disruptions across the region drove oil prices above $100 per barrel. Major Gulf producers are cutting output, while shipments through the strategic Strait of Hormuz remain effectively halted due to the war involving Iran. The conflict has now entered its second week with no clear end in sight: Iran continues its attacks on neighboring countries in the region, while Israel has struck fuel depots in Iran and threatened the country’s power grid. At the same time, US President Donald Trump has demanded Iran’s unconditional surrender, signaling that a near-term de-escalation is unlikely and that global supply constraints will persist. Adding to the pressure, EIA data show a third consecutive weekly draw of 1.7 million barrels from US gasoline inventories, a tightening further reinforced by China’s directive that major refiners prioritize domestic supply.