Gasoline Turns Higher
US gasoline futures rose above $3.40 per gallon, ending a two-day decline, as dimming prospects for a diplomatic resolution in the Middle East and potential US diesel export restrictions raised concerns over fuel supply. President Donald Trump rejected Iran’s conditional proposal to reopen the Strait of Hormuz, raising expectations of prolonged disruption in the key waterway, although he said he expects negotiations to resume this week. In a separate statement, Trump said he is still considering “very seriously” a US diesel export ban, noting that such a move could lead to higher gasoline prices. If implemented, the ban could prompt refiners to cut crude runs and reduce gasoline production, potentially tightening domestic supply. Still, other administration officials are pursuing alternatives, as Energy Secretary Chris Wright said the administration is seeking voluntary export curbs from refiners, while industry groups have instead urged a suspension of the federal diesel tax.
40 per gallon, ending a two-day decline, as dimming prospects for a diplomatic resolution in the Middle East and potential US diesel export restrictions raised concerns over fuel supply. President Donald Trump rejected Iran’s conditional proposal to reopen the Strait of Hormuz, raising expectations of prolonged disruption in the key waterway, although he said he expects negotiations to resume this week. In a separate statement, Trump said he is still considering “very seriously” a US diesel export ban, noting that such a move could lead to higher gasoline prices.
If implemented, the ban could prompt refiners to cut crude runs and reduce gasoline production, potentially tightening domestic supply. Still, other administration officials are pursuing alternatives, as Energy Secretary Chris Wright said the administration is seeking voluntary export curbs from refiners, while industry groups have instead urged a suspension of the federal diesel tax.