US gasoline futures hovered around $3.25 per gallon, following the pullback in crude oil prices as markets awaited details on new US sanctions against Iran. Treasury Secretary Scott Bessent is expected to unveil the latest measures, while the US president has warned that penalties could extend to Iran’s trading partners.
Despite the heightened geopolitical tensions, traffic through the key shipping corridor has remained strong. At the same time, worries about demand have added further pressure on prices. China’s largest refiner, Sinopec, reported an 8% decline in gasoline consumption in the first half of 2026, reflecting both rising adoption of electric vehicles and elevated pump prices amid constrained refined-fuel supply.
On the supply side, tightening Canadian crude flows risk pushing refined-product prices higher, particularly in the US Midwest, where roughly 70% of refinery feedstock is sourced from Canada. Fuel supply risks have also grown following Ukrainian strikes on Russian refineries, which have curtailed production and contributed to shortages across several regions.