Gasoline Prices Hit 8-Week Low

US gasoline prices declined to about $2.90 per gallon, the lowest since April 17, following reports that the US and Iran had reached a peace deal that could gradually normalize Middle East energy exports. President Donald Trump said on social media the deal was “now complete,” with the Strait of Hormuz to reopen without transit fees and the Iran blockade lifted once signed on June 19. Iranian Deputy Foreign Minister Kazem Gharibabadi also confirmed an agreement had been reached but said details would remain confidential until the signing ceremony. While the deal has eased supply concerns for Gulf producers and shippers, key hurdles remain before flows through Hormuz can fully resume, including mine clearance and uncertainty over Iran’s plans to tighten control over shipping. Producers also warned that full recovery could take months due to technical and geological challenges and infrastructure damage.

US gasoline prices dropped below $3 per gallon, extending losses from the previous session, weighed by hopes that the US and Iran are nearing a peace agreement that could end the war. Iran’s semi-official Mehr News Agency reported that a 14-point draft agreement between the US and Iran includes provisions for the lifting of oil sanctions, although the proposal still requires approval from Iranian authorities. Separately, US President Donald Trump said a peace deal with Iran could be signed as soon as the weekend. The developments eased tensions following a recent military escalation and revived hopes that the Strait of Hormuz, which handles around one-fifth of global LNG flows, could gradually reopen. Meanwhile, EIA data showed gasoline inventories rose by nearly 0.2 million barrels in the first week of June, defying expectations of a 0.5 million barrel draw.

US gasoline prices fell to $3.0 per gallon, remaining volatile throughout the week as markets weighed shifting developments in the Middle East. President Donald Trump said a peace deal with Iran could be signed as soon as the weekend and called off planned airstrikes after talks with Tehran. The comments came despite earlier threats targeting Iran’s oil infrastructure, while hostilities between the US and Iran had escalated earlier in the week. The absence of firm agreements kept energy markets choppy, while raising concerns over extended supply disruptions. The Strait of Hormuz has remained largely constrained since March, handling roughly one-fifth of global oil flows. Meanwhile, EIA data showed gasoline inventories increased by nearly 0.2 million barrels in the first week of June, defying expectations of a 0.5 million barrel draw. Still, the modest build followed several weeks of steep declines, suggesting stocks had been drawing down quickly ahead of the summer driving season.