FX.co ★ Gasoline Retreats Further

US gasoline futures dropped below $3.10 per gallon, extending their pullback from the two-month high of $3.50 reached on July 23, as markets weighed improving shipping flows against persistent geopolitical risks. Oil shipments from the Middle East increased, with more vessels leaving the Persian Gulf while keeping their transponders switched off, and two Saudi tankers reportedly crossing the Bab el-Mandeb Strait undetected. In a bid to bolster security, Saudi Arabia proposed an international maritime coalition to safeguard key shipping lanes, drawing representatives from 43 countries to talks focused on protecting navigation in the Red Sea following the Iran-backed Houthis’ declared blockade against the kingdom. In Russia, the government extended its diesel and gasoline export ban through January 2027 as fuel shortages lingered after Ukrainian drone strikes shut down another crude distillation unit. Even so, gasoline was still on track for a roughly 5% monthly gain, supported by heightened tensions after an earlier escalation of strikes exchanged between the US and Iran this month.