03.03.202603:58:29UTC+00Gasoline Hits Near 20-Month High

Gasoline prices rose 1.3% to about 2.41 USD per gallon, reaching their highest level since July 2024, as escalating tensions in the Middle East continued to fuel fears of supply disruptions. President Trump cautioned that the conflict involving the US, Israel, and Iran could last longer than a few weeks, heightening concerns over sustained volatility in global energy markets.

Shipping traffic through the Strait of Hormuz—a strategic chokepoint for more than 20% of the world’s daily oil supply—has slowed sharply amid surging war-risk insurance premiums. Although Iran accounts for less than 5% of global oil output, with most of its exports going to China under US sanctions, it retains significant leverage due to its control over access to the strait.

In an effort to stabilize markets, eight OPEC+ members announced plans to increase production by more than 200,000 barrels per day starting next month. Leading OPEC+ producers, led by Saudi Arabia and Russia, had previously paused output hikes in the first quarter, but agreed to accelerate them following US-Israeli airstrikes on Iran.