U.S.-Iran Military Tensions Threaten to Double Gasoline Prices to $5 Per Gallon

The Middle East is witnessing a significant military buildup as the U.S. prepares its largest force near Iran since 2003. Analysts warn that a potential military conflict could trigger severe disruptions in global energy supply chains and vital shipping routes. Reports suggest that such a confrontation could cause domestic gasoline prices to double, surging from $2.50 to approximately $5.00 per gallon. Market participants are increasingly concerned about the security of oil flows through the Strait of Hormuz, which is adding a substantial risk premium to energy markets. Investors are closely monitoring the impact of this escalation on WTI and Brent crude benchmarks. Consequently, RBOB gasoline futures and the USO fund could face extreme upward volatility amid the rising geopolitical heat.