US gasoline futures slipped to around $3.40 per gallon, extending losses for a second straight session, after reports that Iran proposed reopening shipping through the Strait of Hormuz within seven days, conditional on the US lifting its blockade. The announcement strengthened expectations for a possible easing of regional tensions ahead of President Trump’s address to the UN General Assembly on Tuesday, which Iranian President Pezeshkian is also scheduled to attend.
Concerns over prolonged disruptions to Saudi Arabia’s East–West pipeline have likewise diminished, amid indications that this key export route could partially resume operations within days. At the same time, the crack spread has climbed to record highs, with refining margins widening on the back of rising refined fuel prices.
Heading into winter, as heating demand increases, refiners have been shifting production toward higher‑priced diesel, further tightening gasoline supply. Ongoing Ukrainian strikes on Russian refining infrastructure have added further support to elevated prices, while Russia is poised to extend its diesel export ban beyond September.
