US gasoline futures climbed above $3.22 per gallon as traders assessed the likelihood of an energy ceasefire between Russia and Ukraine. President Trump said on Sunday that both sides had agreed to halt attacks on energy infrastructure, but Ukraine reported that Russian air strikes on its facilities were continuing. Kyiv also vowed to keep targeting Russian energy assets unless Moscow committed to an energy ceasefire.
Supply risks were compounded by ongoing tanker attacks in the Strait of Hormuz, though shipping flows there have recovered to nearly 98% of pre-war levels. Fuel prices have retreated in recent weeks but remain elevated, with 12.1% of global refining capacity still offline as of September.
Trump added that he was working with Russia to increase diesel shipments to global markets, in tandem with a temporary easing of US sanctions on Russian fuel. At the same time, IEA Executive Director Fatih Birol called on governments to fast-track planned diesel releases and consider additional measures to boost supply.
Separately, producers in the Gulf of Mexico continued efforts to restore offshore output in the wake of Hurricane Isaias.
