Gasoline Holds at 2-Week High

US gasoline futures traded around $3.10 per gallon, remaining near a two-week high as markets assessed the prospects of a potential deal over the Strait of Hormuz. Following President Trumps statement that the US had "total control" over the strategic waterway, Tehran stated the Strait of Hormuz was "under Iran's control and management", adding to uncertainty over the situation. Meanwhile, EIA data showed US crude inventories recorded their largest weekly increase since early 2023. However, gasoline stocks fell by 1 million barrels in the week ended August 7th, below expectations, leaving inventories 6% below the five-year seasonal average. Elsewhere, intensifying Russia-Ukraine attacks heightened concerns over prolonged energy disruptions, after Ukraine targeted major Russian refineries. Russia’s overseas crude shipments fell to their lowest since May, while Moscow extended its gasoline export ban through January 2027.

US gasoline futures traded around $3.13 per gallon on Wednesday, near a two-week high, as markets assessed the viability of efforts toward a potential deal on the Strait of Hormuz. Pakistan’s defense minister said the US and Iran are “close to some sort of arrangement” over the waterway, while Iran-Oman talks have reached an advanced stage, according to a Qatari official cited by Al Jazeera. Escalating Russia-Ukraine attacks also raised concerns over prolonged energy disruptions 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. Meanwhile, EIA data showed US gasoline inventories fell by one million barrels in the week ended August 7th, below expectations and leaving stocks 6% below the five-year seasonal average. At the pump, the EIA raised its retail gasoline price forecast for this year and 2027.

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.