Gasoline Prices Decline

US gasoline prices fell below $3.10 per gallon, remaining volatile throughout the week as markets weighed shifting developments in the Middle East. President Donald Trump said a peace deal with Iran could be signed as soon as the weekend and called off planned airstrikes after talks with Tehran. The comments came despite earlier threats targeting Iran’s oil infrastructure, while hostilities between the US and Iran had escalated earlier in the week. The absence of firm agreements kept energy markets choppy, while raising concerns over extended supply disruptions. The Strait of Hormuz has remained largely constrained since March, handling roughly one-fifth of global oil flows. Meanwhile, EIA data showed gasoline inventories increased by nearly 0.2 million barrels in the first week of June, defying expectations of a 0.5 million barrel draw. Still, the modest build followed several weeks of steep declines, suggesting stocks had been drawing down quickly ahead of the summer driving season.