Gasoline Prices Climb to 3½-Year High

US gasoline futures rose above $2.90 per gallon on Friday, extending their rebound from a nearly five-week low as renewed tensions in the Strait of Hormuz cast fresh doubt on efforts to fully reopen the vital shipping route. Iranian state media also reported that lawmakers are considering suspending transit rights under the Oman-brokered shipping agreement for vessels linked to the US, Israel, and other countries deemed hostile by Tehran. Adding to supply concerns, Ukraine carried out drone strikes on two Russian oil refineries, including one of the country's largest in the Yaroslavl region, following a brief lull in late July that had allowed a partial recovery in fuel supplies. Russia's gasoline and diesel exports plunged 60% in July, prompting Moscow to extend its gasoline export ban through January 2027. Meanwhile, EIA data showed gasoline inventories fell by 1.64 million barrels in the week ended July 31, leaving stockpiles 7% below the five-year seasonal average.

US gasoline futures rose above $2.85 per gallon after reaching a near five-week low, as traders weighed signs of easing tensions between the US and Iran against renewed Ukrainian attacks on Russian refining infrastructure. Ukraine struck two Russian oil refineries overnight at the Yaroslavl region, one of the country's largest, following a brief lull during late July that had allowed repairs and supply recovery. Russia's gasoline and diesel exports plunged 60% in July, prompting Moscow to extend its gasoline export ban through January 2027. Meanwhile, EIA data showed US gasoline inventories fell by 1.64 million barrels in the week ended July 31, exceeding expectations and leaving stocks 7% below the five-year seasonal average. Elsewhere, Iran and Oman reached an agreement on a temporary shipping route, though officials stressed it would not amount to a full reopening of the strategic waterway, while US officials continued to express confidence that a deal with Iran was nearing.

US gasoline futures fell toward $2.80 per gallon, a four-week low as traders priced in improving supply prospects. Iran announced an agreement with Oman on a shipping route through the Strait of Hormuz, raising expectations of more energy flows through the key waterway. Iranian officials said a joint statement was being finalized, with the route expected to remain operational for two to four months. However, they stressed that the arrangement does not amount to a full reopening of the Strait. President Donald Trump also said talks with Tehran were ongoing. However, supply concerns persisted elsewhere. In Russia, diesel and gasoline exports plunged 60% in July after Ukrainian strikes disrupted refinery operations, prompting Moscow to extend its gasoline export ban through January 2027. Meanwhile, EIA data showed US gasoline inventories fell by 1.643 million barrels in the week ended July 31, exceeding expectations and leaving stocks 7% below the five-year seasonal average.