Gasoline Holds Decline

US gasoline futures traded around $3.27 per gallon, holding onto their previous-session losses as investors weighed intensified US economic pressure on Iran. The Trump administration announced plans to impose secondary sanctions on entities facilitating Iran’s economy as part of a new campaign dubbed “Operation Economic Outcast.” Treasury Secretary Scott Bessent said the US was targeting Iran’s financial connections globally and urging other countries to cease economic ties with Tehran. Still, markets remain uncertain whether the measures will ease Iran’s control of the key waterway or instead prolong disruptions. On the demand side, China’s top refiner Sinopec reported that gasoline consumption fell 8% in the first half of 2026, as higher prices and growing electric-vehicle adoption weighed on demand. Meanwhile, US refineries have been running above 95% capacity for more than 11 weeks, the longest sustained stretch in over 25 years.

US gasoline futures traded near $3.25 per gallon, tracking weaker crude prices as markets awaited the announcement of US sanctions on Iran. Treasury Secretary Scott Bessent is set to outline the latest measures, while the US president has threatened sanctions against Iran’s trading partners. Despite heightened tensions, shipments through the waterway have remained robust, while demand concerns have also weighed on prices. China’s top refiner Sinopec reported that gasoline consumption fell 8% in the first half of 2026, amid increased use of electric vehicles and elevated prices amid lower refined-fuel availability. Meanwhile, tighter Canadian crude supplies could further lift refined-product prices, particularly in the US Midwest, where refiners source roughly 70% of their crude from Canada. Fuel supply concerns have also intensified after Ukrainian strikes on Russian refineries disrupted production and led to shortages in several regions.

US gasoline futures fell below $3.30 per gallon, tracking a decline in benchmark crude prices, as markets await Washington’s announcement of new sanctions on Iran. Treasury Secretary Scott Bessent is set to outline the measures at a press conference, warning that the US could impose what he described as the “toughest sanctions in history.” President Donald Trump has also threatened penalties on countries that continue trading with Tehran. The US efforts to isolate Iran could increase the risk of retaliation and deeper disruptions to global energy markets. Meanwhile, tighter Canadian crude supplies could put upward pressure on refined product prices by constraining refinery feedstock, particularly in the US Midwest, where refiners rely on Canada for around 70% of their crude. Fuel supply concerns have also intensified after Ukrainian strikes on Russian refineries disrupted production and led to shortages in several regions.