Gasoline Futures Rise

Gasoline futures rose above $3 per gallon on Friday, extending gains from the previous session, as markets continued to gauge the stability of the fragile ceasefire ahead of US-Iran talks this weekend. Israeli strikes on Lebanon prompted Iran to shut the Strait of Hormuz again, adding pressure to diplomatic efforts.

Prime Minister Benjamin Netanyahu stated that operations in Lebanon fall outside the scope of the US-Iran truce, while Washington has scheduled talks next week with Israel and Lebanon to advance ceasefire discussions. Further undermining the ceasefire, President Donald Trump warned Tehran against imposing fees on vessels transiting the Strait and criticized Iran’s management of energy flows, calling it insufficient. Despite ongoing tensions, the earlier ceasefire announcement this week triggered a selloff in energy markets, with gasoline down more than 7% on the week.