Gasoline Prices Retreat

US gasoline futures fell to around $3.48 per gallon, retreating from a four-month high, as markets weighed uncertainty over potential US diesel export restrictions alongside diplomatic developments in the Middle East. While Energy Secretary Chris Wright favors voluntary curbs on diesel exports, President Trump has previously backed restrictions, leaving the policy outlook unclear. Such restrictions could prompt US refiners to cut crude runs by about 12%, according to S&P Global Energy CERA, reducing gasoline production. Meanwhile, diplomatic hopes between the US and Iran eased some supply concerns, as negotiators reportedly explored a phased path to end the war, including reopening the Strait of Hormuz and lifting Washington’s economic blockade of Iran. However, continued attacks in the Middle East tempered hopes for broader de-escalation. Separately, US gasoline inventories unexpectedly declined by 1.7 million barrels in the week ending September 18th, according to the EIA.

Gasoline increased to 3.64 USD/Gal, the highest since May 2026. Over the past 4 weeks, Gasoline gained 11.79%, and in the last 12 months, it increased 81.62%.

US gasoline futures held near $3.60 a gallon, remaining at its highest levels since May 19th, amid prospects of tightening fuel markets while optimism of US-Iran diplomatic talks weakened. Meanwhile, Energy Secretary Wright has warned the oil industry to brace for possible curbs on US diesel exports, a debate also backed by the US President despite broader growing opposition. Amid an already tight fuel market, a ban on diesel shipments would prompt US refiners to cut crude runs about 12%, according to S&P Global Energy CERA, reducing fuel availability. As winter approaches and heating demand rises, refiners are shifting output toward higher-priced diesel, tightening gasoline markets. US gasoline inventories unexpectedly declined by 1.7 million barrels in the week ending September 18th, according to EIA. Additionally, persistent Ukrainian attacks on Russian refining infrastructure also contributed to elevated prices, with Russia set to extend its diesel export ban beyond September.