Gasoline Near Three-Week Low

US gasoline futures traded below $3.0 per gallon in early August, holding near a three-week low as markets remained focused on developments in the Strait of Hormuz. President Donald Trump said his latest offer of talks was Tehran's "last chance" and reiterated his confidence that the key shipping route would fully reopen. While Iran denied holding direct talks with the US, it said negotiations with Oman to increase traffic through the strait were making progress. Meanwhile, Gulf producers continued to develop alternative export routes, with Turkey and Iraq renewing a pipeline agreement, while Kazakhstan restored its crude flows through the Caspian Pipeline Consortium after a temporary disruption. In Russia, the government extended its diesel and gasoline export ban through January 2027 as fuel shortages persisted amid continued Ukrainian strikes on major oil refineries.

US gasoline futures fell toward $3.0 per gallon in early August, declining for the third consecutive session to a three-week low after President Donald Trump canceled a planned attack on Iran, easing some concerns over supply disruptions in the region. Trump said Saudi Arabia and other key Middle Eastern allies had urged him to suspend the planned strikes in favor of renewed negotiations, while reiterating his call for the swift reopening of the Strait of Hormuz. Meanwhile, Gulf producers continued seeking alternative export routes, with Turkey and Iraq extending a pipeline agreement, while Iran said talks with Oman on a new route through the Strait of Hormuz were in their final stages. In Russia, the government extended its diesel and gasoline export ban through January 2027 as fuel shortages persisted amid continued Ukrainian strikes on major oil refineries.

US gasoline futures fell below $3.10 per gallon, retreating further from the two-month high of $3.50 reached on July 23, as investors weighed improving shipping activity against ongoing geopolitical risks. Oil shipments from the Middle East picked up as more vessels left the Persian Gulf with transponders turned off, while two Saudi tankers crossed the Bab el-Mandeb Strait undetected. Additionally, Saudi Arabia proposed an international maritime coalition to protect key shipping routes, with representatives from 43 countries participating in talks to safeguard navigation in the Red Sea following the Iran-backed Houthis' announced blockade against the kingdom. In Russia, the government extended its diesel and gasoline export ban through January 2027 as fuel shortages persisted after Ukrainian drone strikes shut another crude distillation unit. Still, gasoline remained on track for a 5% monthly gain as exchanges of strikes between the US and Iran escalated earlier this month.