Gasoline Hits 3-Week High

US gasoline prices rose above $3.0 per gallon, trading at a three-week high, after the US launched fresh strikes against Iran in response to a series of attacks on shipping in the Strait of Hormuz. The US Treasury also revoked a sanctions waiver that had allowed Tehran to sell oil, reversing a key element of the interim peace deal with the Islamic Republic. The escalation heightened concerns over renewed disruptions to global energy markets and challenged earlier expectations of a supply glut, which had been fueled by higher OPEC+ quotas and rising output from Middle Eastern producers. Further supporting gasoline prices, refinery disruptions in Russia added to supply concerns after the country’s largest oil refinery in western Siberia and a major gasoline producer halted operations following a Ukrainian drone strike, one of Kyiv’s longest-range attacks of the conflict.

US gasoline prices rose above $3.0 per gallon, reaching their highest level in three weeks, as resilient refining margins and tight fuel supplies continued to support refined products. Refinery constraints and robust gasoline demand kept crack spreads firm, while Ukrainian drones struck Russia's largest oil refinery in Omsk, in one of the war's longest-range attacks, heightening concerns over refined fuel supplies. The support for gasoline prices contrasted with weakness in crude, where higher OPEC+ output and improving global supplies continued to weigh on benchmark prices. Oil and gas shipments through the US-protected corridor in the Strait of Hormuz also continued to recover, allowing major Persian Gulf producers to ramp up exports. Saudi Arabia's shipments climbed close to pre-conflict levels as tanker traffic normalized, while the United Arab Emirates also restored export flows.

US gasoline prices traded around $2.90 per gallon, hovering just above their lowest level in more than three months amid concerns over a potential global oil supply glut. OPEC+ agreed to raise production quotas by 188,000 barrels per day next month, following similar increases in June and July. While much of the additional supply has yet to materialize, the move underscores the group's commitment to gradually restoring output as regional conditions continue to normalize. Energy shipments through the US-protected corridor in the Strait of Hormuz also continued to recover, allowing major Persian Gulf producers to ramp up exports. Saudi Arabia's shipments climbed close to pre-war levels as tanker traffic normalized, while the United Arab Emirates also restored its export flows. Gasoline prices have fallen nearly 10% over the past quarter after Washington and Tehran reached an interim peace agreement.