FX.co ★ Gasoline Futures Rise

Gasoline futures climbed to $3.03 per gallon on Thursday, rebounding after a steep decline in the previous session, as the fragile two-week ceasefire in the Middle East showed signs of collapse following Israeli strikes on Lebanon. A series of Israeli air raids across Lebanon on Wednesday prompted Iran to suspend the transit of oil tankers through the Strait of Hormuz. Iran’s Parliament speaker stated that three key provisions of a 10-point ceasefire proposal had been breached ahead of negotiations planned for Friday in Pakistan, adding that under such circumstances, a bilateral ceasefire or further talks was no longer a reasonable option. The shutdown of the strait, which links the Persian Gulf to global markets, has resulted in the largest oil supply disruption in history. Analysts also cautioned that even if shipping through the waterway resumes, the restoration of energy flows will not be immediate.