US gasoline futures climbed to about $3.16 per gallon on Wednesday, a two-week high, following gains in crude oil as markets weighed the prospects for a potential agreement on the Strait of Hormuz. Pakistan’s defense minister said the US and Iran are “close to some sort of arrangement” regarding the key shipping lane, while a Qatari official cited by Al Jazeera noted that Iran–Oman talks have reached an advanced stage.
On the inventory front, API data showed that US gasoline stocks fell by 1.531 million barrels in the week ending August 7, reversing a 156,000-barrel build the previous week.
Geopolitical risks also underpinned prices. Intensifying Russia–Ukraine hostilities stoked fears of additional energy supply disruptions after Ukraine carried out a long-range drone strike on a major Russian refinery. Russia’s seaborne crude exports dropped to their lowest level since May, and Moscow extended its ban on gasoline and diesel exports through January 2027.
At the retail level, the EIA raised its forecast for US gasoline prices for both this year and 2027.
