Gasoline Holds Near Two-Week High

US gasoline futures held around $3.18 per gallon, near a more than two-week high, as crude shipments through the Strait of Hormuz slowed while US-Iran negotiations stalled. Prospects for a peace deal remain limited after President Trump signaled plans to increase economic pressure on Tehran, while Treasury Secretary Scott Bessent said new sanctions could be announced this week. Meanwhile, more vessels came under attack in the key waterway late last week, including ships linked to Abu Dhabi National Oil Co. Despite the disruptions, Middle Eastern producers continue to transport substantial volumes of crude through the Persian Gulf. Elsewhere, repeated Ukrainian strikes on Russian oil refineries have disrupted fuel supplies, prompting gasoline rationing in at least two regions and restrictions on refined-product exports. Russia has since extended its existing diesel export ban until January 2027, maintaining restrictions on global middle-distillate supplies.

US gasoline futures traded above $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.