US gasoline futures slipped to $3.40 per gallon on Wednesday, retreating from a two-month high of $3.49 earlier in the session, as improving supply signals temporarily offset the impact of escalating geopolitical risks. Russia’s gasoline market showed signs of stabilization, with fuel availability improving after Ukraine redirected its attacks from major oil refineries to maritime targets.
At the same time, EIA data indicated that US gasoline inventories rose by 0.765 million barrels in the week ending July 17, an improvement from the prior week, though stockpiles remained 7% below the five-year seasonal average.
Despite these supply-side gains, prices stayed supported as the US and Iran moved deeper into a second week of hostilities. President Donald Trump warned of strikes on Iranian infrastructure if Tehran continued to target vessels transiting the Strait of Hormuz. Additional threats from Yemen’s Houthi rebels in the Red Sea and attacks on the Caspian Pipeline Consortium’s Black Sea terminal further stoked concerns over potential disruptions to global oil supplies.
