FX.co ★ Gasoline Hovers Near 1½-Year Peak

Gasoline prices held near $2.45 per gallon, hovering around their highest level since July 2024, as markets weighed US plans to insure tankers transiting the Strait of Hormuz against persistent regional supply disruptions. President Donald Trump announced that the US International Development Finance Corporation would provide insurance for vessels to help sustain energy and trade flows, with naval escorts on standby if required. Nonetheless, uncertainty remains high as hostilities entered a fifth day, with Israeli and US strikes on Iran triggering retaliatory attacks on regional energy infrastructure. Iraq has curtailed roughly half of its crude production because of storage constraints and blocked exports, raising the risk that nearly 3 million bpd of output could be halted if shipments do not resume. Saudi oil giant Aramco is seeking to reroute some exports through the Red Sea to avoid the Strait of Hormuz. In parallel, OPEC+ recently confirmed it would resume production increases following a first-quarter pause, targeting a 206,000 bpd rise in April.