Gasoline is up by 5%

US gasoline futures fell below $3.1 per gallon on Tuesday, after approaching a one-week high of $3.18 earlier in the session, as hopes for a US-Iran peace agreement raised expectations of the key waterway reopening. Pakistan’s Defense Minister Khawaja Asif stated a deal was close and that lasting peace would serve the region’s interests. Meanwhile, Iran said talks with Oman on alternative shipping routes were at an advanced stage, according to a Qatari Foreign Ministry spokesperson cited by Al Jazeera. Still, US President Donald Trump adopted a tougher stance, warning that Tehran would have to pay for damage caused by past attacks. Elsewhere, escalating Russia-Ukraine attacks raised concerns over further disruptions to energy infrastructure after Ukraine launched a long-range drone strike on a major Russian refinery. Russia’s overseas crude shipments fell to their lowest since May, while Moscow extended its ban on gasoline and diesel exports through January 2027.

Gasoline increased 5% to 3.1346 USD/Gal

US gasoline futures rose to around $3.15 per gallon, advancing for the fourth straight session, as uncertainty persisted over the reopening of the Strait of Hormuz. President Donald Trump made sweeping new demands on Iran, further dimming hopes for an agreement to reopen the key waterway. This comes after Iran said a deal with Oman on new shipping routes was close to being finalized but warned that reopening the waterway remained conditional on Washington meeting additional demands. Oil supply risks were further underscored by claims from Iran-aligned Houthis that they had struck Saudi Aramco’s Jazan refinery. Elsewhere, escalating attacks between Russia and Ukraine have increased the risk of further strikes on energy facilities, following Ukraine’s recent long-range drone attack on a major Russian refinery. Moscow has since extended its ban on gasoline and diesel exports through January 2027.