Gasoline Prices Advances Further

Gasoline futures in the US held near $3.10 per gallon, after rebounding from a six-week low of $3.03 reached on May 29, following reports that Iran would suspend exchanges of messages with the US in response to Israel’s escalating operations in Lebanon. Earlier, Foreign Ministry spokesperson Esmail Baghaei said Iran remained engaged with the US but continued to do so with “distrust.” The development clouded prospects for an interim peace agreement, even as President Donald Trump said discussions with Tehran would “work out well” despite renewed clashes near the Strait of Hormuz. Supporting prices further, US gasoline inventories fell for a 15th consecutive week in May as refineries operated at high rates using crude from strategic reserves, while some capacity shifted toward producing diesel and jet fuel to address supply concerns.

US gasoline futures rose about 3% to above $3.10 per gallon in early June, trimming recent losses amid ongoing uncertainty over a potential US–Iran peace agreement that could ease supply pressures. Both sides were reportedly working on revisions to a draft accord aimed at prolonging a ceasefire and reopening the Strait of Hormuz, although signs of substantial progress remained limited. Further heightening uncertainty, tensions in Lebanon escalated as Israeli advances and clashes with Hezbollah raised spillover risks. Energy exports from the key region have been at a standstill since the first week of March, driving global oil inventories to drop at a record pace, per the IEA. Likewise, gasoline stocks in the US sank for the 15th consecutive week in May, as refineries have been operating at full capacity with feedstock from the SPR. Refinery capacity was also lower for motor gasoline as refiners switched to distillates in an attempt to prevent diesel and jet fuel shortages.

US gasoline future rose to around $3.10 per gallon, but remained close to their lowest in over one month, on expectations of respite in supply following reports that Iran and the US agreed to a truce in their conflict. The reports pointed to a 60-day memorandum that would extend the current ceasefire and pave the way to restore exports of crude oil and refined products through the Strait of Hormuz within a month of the agreement. Energy exports from the key region have been at a standstill since the first week of March, driving global oil inventories to drop at a record pace, per the IEA. Likewise, gasoline stocks in the US sank for the 15th consecutive week in May, as refineries have been operating at full capacity with feedstock from the SPR. Refinery capacity was also lower for motor gasoline as refiners switched to distillates in an attempt to prevent diesel and jet fuel shortages.