FX.co ★ Gasoline Prices Continue Gains

US gasoline prices climbed further above $3.10 per gallon, supported by growing concerns that the war involving Iran could drag on and continue to disrupt energy supplies as hostilities escalate. The US carried out strikes on multiple targets in Iran, and reports indicated that President Donald Trump warned of additional attacks unless an interim peace agreement is reached. Iran was also reported to have launched missile and drone strikes against US vessels operating in the Strait of Hormuz. These developments have intensified fears of a prolonged military confrontation and have cast doubt on the prospects for a durable peace deal.

On the fundamentals side, EIA data showed that US gasoline inventories increased by almost 0.2 million barrels in the first week of June, defying expectations for a 0.5 million barrel draw. Still, this modest weekly build followed several weeks of steep declines, underscoring that stockpiles have been falling rapidly ahead of the summer driving season.