Gasoline futures retreated to around $3.00 per gallon, erasing gains from the previous session, as expectations of further US–Iran peace talks outweighed a larger-than-anticipated decline in inventories. EIA data showed gasoline stocks fell by 6.3 million barrels, far exceeding forecasts for a 2.1 million-barrel draw. Weekly gasoline demand rose by 0.5 million bpd, while the four-week average increased by 0.1 million bpd.
At the same time, reports indicate that the US and Iran are considering extending their two-week ceasefire to allow more time for negotiations. Still, the Strait of Hormuz remains effectively closed, with a US naval blockade of Iranian ports continuing to stoke worries over potential supply disruptions. Iran has warned it could respond to any extension of the blockade by halting shipments through other major waterways.
