US gasoline futures climbed further to above $3 per gallon, their highest level since July 2022, as traders assess how long the Middle East war might continue to disrupt global supply. The conflict now entered its third week, putting oil infrastructure at risk and keeping the Strait of Hormuz shut. Last Friday, the US struck military sites on Kharg Island, a crucial outpost in the Persian Gulf from which Iran exports around 90% of its oil, and warned that the island could also be targeted if Tehran interferes with transit through the Strait of Hormuz. Despite recent attempts by the US to ease supply concerns by issuing a 30-day license allowing countries to purchase stranded Russian oil and petroleum products and the IEA’s efforts to release unprecedented reserves, these measures did little to calm market fears of prolonged disruptions.
