09.03.202621:03:22UTC+00Gasoline TUmbles Nearly 5%

Gasoline futures tumbled nearly 5% to below $2.64 per gallon on Monday afternoon, as a sharp pullback in crude oil prices and strong signals of intervention from the G7 eroded the geopolitical risk premium. Prices had initially spiked to their highest levels since 2022 after the conflict with Iran disrupted shipping in the Strait of Hormuz and prompted production cuts across the Gulf.

The rally lost steam, however, after President Donald Trump indicated that the military campaign was nearing its end and reported that maritime traffic was resuming along key shipping routes. The shift in sentiment was further reinforced when G7 finance ministers announced their willingness to tap strategic petroleum reserves to stabilize global fuel markets and curb inflationary pressures.

Although US gasoline inventories had posted a third straight weekly drawdown of 1.7 million barrels earlier in March, the abrupt downturn in the broader energy complex and receding fears of sustained supply disruptions triggered a swift sell-off in gasoline benchmarks.