Gasoline futures traded below $2.70 per gallon on Wednesday, consolidating most of the previous session’s sharp losses after the IEA unveiled plans for an unprecedented release of strategic oil reserves to rein in surging crude prices. If approved, the drawdown would exceed the 182 million barrels released in 2022 following Russia’s invasion of Ukraine, and would require unanimous backing from all member countries in a vote scheduled for Wednesday.
At the same time, markets were digesting mixed signals from the Trump administration over security in the Strait of Hormuz. Energy Secretary Chris Wright briefly posted on social media that the US Navy had escorted a tanker, but later deleted the statement after the White House denied such an operation had taken place. Adding to the uncertainty, the Pentagon stated that the US and Israel had conducted their most intense strikes on Iran to date and would continue until Tehran is defeated, in direct contrast to President Trump’s earlier indication that the conflict could soon be resolved.
