Gasoline Near 2-Month High

US gasoline prices rose to around $3.45 per gallon, near their highest level since late May, as concerns over broader supply disruptions in the Middle East intensified. Iran-backed Houthi militants claimed attacks on two Saudi oil tankers, heightening fears of further disruptions to global oil flows as risks in the Red Sea added to those in the Strait of Hormuz. President Trump warned of strikes on Iranian infrastructure if shipping through the strait is attacked. Attacks on the Caspian Pipeline Consortium's Black Sea terminal also fueled supply concerns. Limiting some gains, fuel supplies in Russia showed signs of improving after Ukraine shifted attacks away from major oil refineries toward maritime targets. Meanwhile, EIA data showed US gasoline inventories increased by 0.765 million barrels in the week ended July 17, recovering from the previous week but remaining 7% below the five-year seasonal average.

US gasoline futures eased to $3.40 per gallon on Wednesday from the two-month high of $3.49 earlier in the session as positive signs for supply momentarily offset the impact of geopolitical tensions. Russia's gasoline market showed signs of stabilizing, with fuel availability improving after Ukraine shifted attacks from major oil refineries to maritime targets. Meanwhile, EIA data showed US gasoline inventories rose by 0.765 million barrels in the week ended July 17, improving from the previous week but remaining 7% below the five-year average for the period. Still, prices remained supported as the US and Iran head deep into a second week of hostilities, with President Donald Trump warning of strikes on Iranian infrastructure if Tehran continued attacks on vessels transiting the Strait of Hormuz. Threats from Yemen’s Houthi rebels in the Red Sea and attacks on the Caspian Pipeline Consortium's Black Sea terminal further fueled concerns over global oil supply disruptions.

US gasoline prices rose above $3.40 per gallon, a two-month high, amid growing concerns over tighter fuel supplies. The US continued strikes on Iranian targets for an 11th consecutive night, while Yemen’s Iran-aligned Houthis threatened Saudi oil vessels in the Bab el-Mandeb Strait and announced a blockade of Saudi Arabia. President Donald Trump also ruled out near-term talks with Iran and warned of broader strikes. Outside the Middle East, supply risks emerged in the Black Sea after attacks targeted the Caspian Pipeline Consortium terminal, a key route for Kazakhstan’s crude exports. Meanwhile, Ukrainian strikes on Russian energy facilities continued to disrupt refinery operations, while stronger diesel and jet fuel margins encouraged refiners to reduce gasoline output. Against this backdrop, industry data showed gasoline inventories fell by 1.379 million barrels in the week ending July 17. At the pump, average US gasoline prices climbed back above $4 per gallon.