U.S. gasoline prices hit $4.50, near a record high.

The ongoing conflict in the Middle East is adding further pressure. According to the American Automobile Association (AAA), the national average retail price of regular unleaded gasoline rose to $4.54 per gallon on Tuesday, breaking the $4.50 mark for the first time since July 2022. It is now only about 50 cents away from the all-time high of $5.01 per gallon set in June 2022. Seasonally, current prices are at their highest level for this time of year. US President Trump has repeatedly promised that gasoline prices will fall after the war with Iran ends. However, the longer prices remain high, the greater the political risk for the Republican Party in the November midterm elections. Furthermore, national gasoline inventories are at their lowest level for this time of year since 2014. Morgan Stanley expects gasoline inventories to tighten further this summer, suggesting that inventories may reach a new record low for this time of year. (Jinshi)