FX.co ★ Gasoline Prices Hold Gains

US gasoline futures traded above $3.10 per gallon, extending a two-day rally, as renewed clashes in the Middle East dampened expectations for progress in US–Iran negotiations. Both sides reportedly carried out new strikes, even as President Donald Trump maintained that talks with Iran were still underway toward a possible peace deal, contradicting Iranian media reports that communications had collapsed. The combination of conflicting diplomatic signals and continued hostilities has kept markets on edge, driving heightened volatility across energy commodities.

Adding further support to prices, industry data showed that US gasoline inventories increased by 3.5 million barrels in the final week of May, reversing a 3.2-million-barrel draw the previous week. Refineries operated at high utilization rates, processing crude from strategic reserves, while some capacity was shifted toward diesel and jet fuel production to help alleviate supply pressures in those markets.