FX.co ★ Gasoline Near 2-Month High

US gasoline prices climbed to about $3.45 per gallon, approaching their highest level since late May, as mounting concerns over broader supply disruptions in the Middle East intensified. Iran-backed Houthi militants claimed responsibility for attacks on two Saudi oil tankers, amplifying fears of further interruptions to global oil flows, with security risks in the Red Sea now adding to existing tensions in the Strait of Hormuz. President Trump warned that the US would target Iranian infrastructure if shipping through the Strait were attacked. Additional supply worries were stoked by strikes on the Caspian Pipeline Consortium’s Black Sea terminal.

These upward pressures were partially offset by signs of improving fuel availability in Russia, after Ukraine shifted its attacks away from major oil refineries and toward maritime targets. At the same time, EIA data showed that US gasoline inventories rose by 0.765 million barrels in the week ended July 17, rebounding from the prior week’s levels but still standing 7% below the five-year seasonal average.