Gasoline prices climbed 1.3% to around 2.41 USD/Gal, hitting their highest level since July 2024 as evolving tensions in the Middle East continued to stoke fears of supply disruptions.
President Trump warned that the conflict involving the US, Israel, and Iran could last longer than a few weeks, intensifying concerns about prolonged volatility in global energy markets.
Shipping activity through the Strait of Hormuz, a chokepoint for over 20% of the world’s daily oil supply, has slowed sharply due to soaring war-risk insurance premiums. While Iran produces less than 5% of global oil, mostly for China under US sanctions, it still wields outsized influence over the strait.
In a bid to calm markets, eight OPEC+ nations announced plans to boost output by more than 200,000 barrels per day starting next month.
Top OPEC+ producers, spearheaded by Saudi Arabia and Russia, had previously paused production increases in Q1 but agreed to accelerate them following US-Israeli strikes on Iran.
