U.S gasoline futures climbed above $3.30 per gallon, hitting their highest level since July 2022, as the Middle East war continued to escalate. Prices are also on track for their biggest monthly gain on record of over 30%, following severe disruptions to energy flows after the near-complete closure of the Strait of Hormuz. In the latest development, Iran-backed Houthi fighters in Yemen have joined the broader conflict and said their operations would persist until attacks against Iran and its allied militant groups come to an end. Houthi involvement adds new risks to crude markets, as Red Sea disruptions and potential threats to Yanbu shipments could further tighten supply. Meanwhile, additional US forces have been deployed to the region, fanning fears of a potential ground invasion. These developments have extended the war into a fifth week and dimmed prospects for a near-term resolution.
