Gasoline Futures Decline

US gasoline futures fell toward $3.0 per gallon, after giving up most of its gains in the previous session, as Israel and Iran agreed to halt mutual attacks following a recent surge in violence. Israeli Prime Minister Benjamin Netanyahu said Israel is currently suspending strikes on Iran but would retaliate if Tehran resumes hostilities, while Iranian media expressed a similar stance. The development kept hopes alive for a potential resumption of talks toward a broader ceasefire agreement in the Middle East. The Strait of Hormuz remained effectively constrained under a dual blockade involving Tehran and Washington, sharply limiting exports of distillate products from the region. Meanwhile, US gasoline inventories rose by more than 3 million barrels in the final week of May, ending a 15-week streak of declines. However, draws of around 8 million barrels each from private crude stocks and the SPR tempered the overall improvement in supply conditions.

US gasoline futures climbed above $3.10 per gallon, rebounding from a seven-week low, as reports showed that Iran and Israel exchanged fire. Iran launched another wave of attacks on Israel just hours after firing ballistic missiles over the weekend. Israel responded with strikes on military targets in western and central Iran, with explosions also reported in Tehran. The escalation came despite President Donald Trump’s calls for both sides to halt fighting and return to diplomacy. The developments heighten the risk of wider conflict, which could further disrupt Middle Eastern shipping routes and energy flows, worsening the already tight conditions in global distillate markets. Meanwhile, US gasoline inventories rose by more than 3 million barrels in the final week of May, ending a 15-week streak of declines. However, draws of around 8 million barrels each from private crude stocks and the SPR tempered the overall improvement in refined product supply.

US gasoline futures fell to around $3.0 per gallon, close to a seven-week low, as markets assessed the likelihood of a viable diplomatic resolution in the Middle East. President Trump described ceasefire talks as being in the “final” stages and was reportedly hesitant to escalate into a full-scale war with Iran despite recent clashes. This contrasted with Iran’s foreign minister, who earlier said negotiations had stalled. Adding to uncertainty, Iran-backed Hezbollah also rejected a US-brokered ceasefire proposal in Lebanon. Restrictions on tanker traffic through the Strait of Hormuz remained, a key chokepoint accounting for about one-fifth of global oil consumption. Meanwhile, US gasoline inventories rose by more than 3 million barrels in the final week of May, ending a 15-week streak of declines. However, draws of around 8 million barrels each from private crude stocks and the SPR tempered the overall improvement in refined product supply.