US Gasoline Rises as Iran Refutes US Talks

US gasoline futures rose more than 3% to around $3.10 per gallon on Tuesday, trimming the previous session’s slump as crude prices climbed after an Iranian lawmaker dismissed prospects for talks with the US. Ali Nikzad, Iran’s deputy parliament speaker, said the Strait of Hormuz would not return to normal and ruled out negotiations with Washington, after Donald Trump on Monday delayed a threatened strike on Iran’s energy infrastructure for five days, citing ongoing talks. At the same time, Israel continued its attacks, while reports indicated that US allies in the Gulf are moving closer to joining the conflict, with Mohammed bin Salman nearing a decision to participate in the strikes. Gasoline futures are now up more than 30% this month, after recently hitting their highest level since July 2022, supported by supply disruptions in the Strait and the seasonal shift to more expensive summer fuel blends.

US gasoline futures fell more than 10% to around $2.91 per gallon on Monday from $3.286 in the previous session after President Donald Trump paused plans to strike Iranian energy infrastructure for five days following what he described as productive talks, triggering a sharp drop in oil prices. However, Iranian media denied any contact with Washington. Brent crude briefly dipped below $100 per barrel as oil slumped more than 11%. Despite the pullback, gasoline futures remain up over 27% this month, recently hitting their highest level since July 2022 at $3.2862, supported by strong spring demand and earlier gains in crude amid the conflict. Supply disruptions linked to the near halt in traffic through the Strait, along with seasonal shifts to costlier summer fuel blends, continue to underpin prices.

US gasoline futures climbed above $3.30 per gallon, hitting their highest level since July 2022, following threats to Middle Eastern energy facilities that could further disrupt supply. President Trump gave Iran 48 hours to fully reopen the Strait of Hormuz or face US strikes on its power infrastructure, while Iran threatened retaliation against key energy plants if Washington acted. Last week, both sides launched a wave of attacks targeting energy infrastructure. Meanwhile, IEA Chief Fatih Birol said he is consulting with governments worldwide and that additional oil stock releases could be considered if needed. This follows a recent major release of emergency stockpiles, while Washington has temporarily lifted sanctions on Iranian oil at sea to ease the supply crunch. With the conflict showing no signs of abating and the closure of the strategic chokepoint, gasoline prices have surged more than 90% so far this year.