Iran conflict lifts US fuel prices above Biden era
US gasoline averaged $4.29 per gallon on 26 Oct, up from $3.05 a year earlier, as the Iran conflict disrupted crude shipments and refining. OI Charts data showed long build-up in an Indian oil producer while energy and airline proxies showed short covering.
pre-market1 source ↓machine-written, see hownot a recommendation
- INDIGO close
- ₹4,608
- On the day
- +1.30%
- Futures OI, short covering
- -0.3%
- Put-call ratio
- 0.57
- Max pain
- ₹4,800
US gasoline prices have crossed a politically significant threshold during Donald Trump’s second term, with the average price since January 2025 reaching $3.472 per gallon, slightly above the $3.471 average recorded during Joe Biden’s presidency. AAA data cited by Reuters put the national regular-gasoline average at about $4.29 per gallon on 26 Oct 2026, compared with $3.05 a year earlier.
The increase followed the US-Israeli war with Iran, which the report said disrupted crude shipments, refining operations and fuel exports from the Middle East. The development matters beyond US politics: higher crude and refined-product prices can lift upstream energy revenue while raising fuel costs for airlines, logistics companies and other transport-intensive businesses. Energy markets ⚡ therefore remain sensitive to shipment disruptions, refinery availability and any change in regional supply flows.
OI Charts data for 26 Oct showed a mixed response among Indian market proxies. The domestic oil producer closed at ₹228.44, up 0.41%, after futures open interest rose 7.0% in a long build-up. Its ₹225 strike carried both the largest call and put open interest, while max pain was ₹225 for the 27 Oct expiry. This places ₹225 as the immediate derivatives reference level, although the stock remained 25.7% below its 52-week high of ₹307.50.
The large energy conglomerate rose 0.99% to ₹1,202, with futures short covering as open interest fell 0.2%. Its put open-interest concentration was at ₹1,160, the largest call concentration at ₹1,300, and max pain at ₹1,200. The airline proxy gained 1.30% to ₹4,608, also showing short covering, but its futures PCR was 0.57 and the largest put open interest stood at ₹4,500. These readings indicate that the oil shock is producing different near-term positioning across energy and fuel-sensitive businesses rather than a uniform sector move.
Traders will watch Middle East shipping and refining updates, the US gasoline average, and the 3 Nov midterm elections. In India, the next session’s reaction around ₹225 for the oil producer, ₹1,200 for the energy conglomerate and ₹4,500 for the airline proxy will show whether current derivatives positioning holds.
Source: OilPrice.com, 26 Oct 2026
Not investment advice. For informational purposes only.