Trump administration to temporarily lift smog-cutting restrictions on gasoline
March 25, 2026
The API called crude oil supplies up 2.35 million barrels, gasoline supplies up 528,000 barrels, and distillates up 1.39 million barrels.
There were reports last night that Israel has announced a 30-day ceasefire. Is this true? The market last night initially pulled back on crude oil, but overnight the selling has accelerated. This morning reports say the US sent a 15-point plan to Iran to help bring the war to a close. Part of this proposal did include a one-month ceasefire, and that may be the news that hit the wire last night and started the selloff.
According to sources, the Trump administration is expected to announce as soon as Wednesday that it will temporarily lift federal smog-cutting restrictions on summer-blend gasoline to curb rising energy prices stemming from the war in Iran.
US retail diesel prices, including taxes, climbed to an average of $5.38 per gallon on March 23, up from $5.07 a week earlier and $3.81 before the war started. Inflation-adjusted prices have averaged $4.80 so far this month, up from $3.52 in January.
Crude oil traders are giving credence to reports that Iran is letting non-hostile ships cross the Strait of Hormuz, but only on Tehran’s terms.
The average estimated for today’s DOE inventory report from the Bloomberg survey is crude oil down 1.950 million, gasoline down 2.140 million, and distillates down 1.127 million.
Tensions remain high in the Middle East as the US is sending additional Marines to the region.