US gasoline prices climbed about 2% to around $3.00 per gallon on Monday, rebounding from the previous session’s losses as escalating US-Iran tensions intensified worries over fuel supplies. The US carried out new strikes on Iran after hitting 140 targets a day earlier in retaliation for an IRGC attack on a container ship transiting the Strait of Hormuz. Iran then responded by targeting US military facilities in Jordan, Kuwait, Bahrain, and Oman.
While Tehran announced that the strait would be closed until further notice, US Central Command stated that commercial vessels could still lawfully transit the critical shipping corridor. The latest flare-up has undermined diplomatic efforts and erased optimism generated last week by reports that technical negotiations were still in progress. Supply risks were further amplified by disruptions in Russia, where gasoline output fell to roughly 65% of typical seasonal consumption after repeated Ukrainian drone strikes forced major refineries to shut down operations.
