US Gasoline Steadies

US gasoline prices steadied around $3.04 per gallon after declining in the previous session, as the US launched fresh strikes on Iran. US Central Command said the “self-defense strikes” were conducted at President Donald Trump’s direction in response to the downing of a US helicopter that was patrolling in the Strait of Hormuz. The latest strikes threaten an already fragile ceasefire in the region and cast doubt on efforts to reach a more durable peace agreement that could reopen the strait. The key waterway remained largely closed under a dual blockade from both sides, severely constraining exports of distillate products from the region. On the supply side, US gasoline inventories increased by more than 3 million barrels in the final week of May, ending a 15-week run of consecutive declines. However, sizable withdrawals of roughly 8 million barrels each from private crude stocks and the SPR offset improvements in supply conditions.