Gasoline Prices Decline

US gasoline prices dipped below $2.90 per gallon, mirroring the decline in crude oil as markets turned their attention to prospects for US-Iran peace talks, though uneven messaging from both sides kept uncertainty elevated. Iran’s Deputy Foreign Minister Kazem Gharibabadi also said Tehran would move ahead with plans to jointly manage traffic in the Strait of Hormuz “if for any reason Oman is not interested in doing so,” highlighting continued disagreements over the key shipping route. Traffic through the strategic waterway eased over the weekend after renewed clashes damaged two vessels, while tanker operators and crews have remained willing to keep transiting the route. Domestically, President Donald Trump urged gasoline retailers to bring prices down immediately, warning that there would be “big problems” ahead if they failed to do so. For the month, gasoline prices are heading for a 6% drop and a roughly 10% decline for Q2.

US gasoline prices rose toward $2.99 per gallon, tracking gains in crude oil prices, as markets continued to price in risks to global oil supplies after the recent exchange of strikes between the US and Iran. Although both sides agreed to pause further attacks and allow commercial vessels to transit the Strait of Hormuz ahead of peace talks later this week, according to a US official speaking on condition of anonymity, investors remain wary. The latest flare-up disrupted the recovery in oil shipments through the strategic waterway that had followed an earlier interim agreement, while many shipowners continued to avoid the route, leaving hundreds of vessels stranded in the Persian Gulf. Adding to geopolitical tensions, Israel said it launched fresh strikes on Iran-backed Hezbollah infrastructure in southern Lebanon. Meanwhile, Saudi Aramco resumed crude loadings at Ras Tanura after a nearly four-month suspension.

US gasoline prices fell more than 2% toward $2.90 per gallon, mirroring the decline in crude oil prices as the continued flow of vessels through the Strait of Hormuz eased supply concerns despite renewed security risks. More previously stranded oil tankers resumed transiting the waterway despite an unidentified projectile striking a container ship near Oman, reviving concerns over Iran's influence on shipping as Tehran and Washington negotiated a permanent end to the conflict. Meanwhile, Saudi Arabian tankers headed toward the Ras Tanura terminal to resume exports through the Persian Gulf for the first time since March, while Qatar issued its first post-war crude tender. Domestically, US gasoline inventories rose by 2.064 million barrels to 216.3 million barrels, defying expectations for a draw. However, stockpiles remained 5% below the five-year average. Separately, President Donald Trump ordered a federal investigation into the slow decline in pump prices.