What is the ruling on two young people engaging in sexual intercourse over clothes to avoid fornication and to release their urges, knowing that they love each other and live in an environment full of temptations?

What you are doing is strictly forbidden (haram (definition)), and it is a type of sodomy (liwat). You must both repent sincerely and urgently to Allah Almighty, adhere to His law, lower your gazes, and guard your private parts, for Allah Almighty says: (Tell the believing men to lower their gaze and guard their modesty; that is purer for them. Indeed, Allah is Acquainted with what they do). You must also heed the Prophet's advice to young people: "O young men, whoever among you can afford to marry, let him do so, for it helps him lower his gaze and guard his modesty. And whoever cannot afford it, let him fast, for it will be a shield for him." Cut off all ties between you, do not be alone together under any circumstances, and each of you should strive to marry as soon as possible, for marriage is the best cure for your current situation.