Gasoline Remains Near 7-Week High

US gasoline prices held above $3.20 per gallon, remaining near its highest level since late May, supported by growing concerns over global supply disruptions. US forces carried out new strikes against Iranian targets and reinstated a naval blockade on Iranian shipping in the Strait of Hormuz. President Donald Trump threatened additional attacks if Tehran does not return to negotiations, while also stepping back from a proposed 20% fee on shipments passing through the waterway. The developments further amplified supply concerns from ongoing disruptions to Russian refining capacity. Data from Energy Aspects showed Russian gasoline production falling to around 65% of seasonal consumption levels after Ukrainian drone attacks disrupted operations at major gasoline refineries, including NORSI and Omsk. Meanwhile, industry data showed US gasoline inventories declined by 1.664 million barrels in the week ending July 10.

US gasoline prices rose toward $3.20 per gallon, reaching their highest level in seven weeks as renewed geopolitical tensions heightened concerns over global supply disruptions. President Donald Trump announced plans to restore a blockade on Iranian vessels passing through the Strait of Hormuz while also imposing a 20% charge on all other cargo using the waterway, raising fears of disruptions to energy supplies. Meanwhile, Ukraine intensified attacks on Russia's energy infrastructure, targeting oil depots in the Stavropol region and storage facilities at the port of Kavkaz in an effort to disrupt Moscow's war efforts. Kazakhstan's Caspian Pipeline Consortium also reported a 7% decline in June shipments due to maintenance at the Tengiz oilfield and lower Russian flows. Adding to the pressure, reduced refining activity, at roughly 65% of seasonal average consumption, contributed to fuel shortages across Russia, which introduced a ban on exports of gasoline.

US gasoline prices rose about 3% toward $3.10 per gallon on Monday, recovering from the previous session's losses as mounting US-Iran tensions heightened concerns over fuel supplies. The US launched fresh strikes on Iran after attacking 140 targets a day earlier in retaliation for an IRGC assault on a container ship transiting the Strait of Hormuz. Iran responded by targeting US military facilities in Jordan, Kuwait, Bahrain, and Oman. Although Tehran declared the strait closed until further notice, US Central Command said commercial vessels could continue lawfully transiting the vital shipping lane. The latest escalation dealt a blow to diplomatic efforts, reversing optimism fueled by reports last week that technical negotiations were still underway. Supply concerns were further reinforced by disruptions in Russia, where gasoline production fell to roughly 65% of seasonal average consumption after repeated Ukrainian drone attacks forced major refineries to suspend operations.