Gasoline Extends Losses

Gasoline futures fell to around $3.00 per gallon, extending losses from the previous session, as rising expectations of peace negotiations between the US and Iran weighed on prices. A White House official said a second round of talks between Washington and Tehran is being discussed, although no formal timeline has been set. Reports also indicated that President Trump expects negotiations could resume “within the next two days,” while noting that progress has been slow. Despite this, uncertainty remains elevated as the US advances a naval blockade of the Strait of Hormuz to limit Iran’s oil exports, while Tehran is considering a temporary pause in shipments to avoid escalating tensions. Highlighting the impact, the IEA reported that no new energy cargoes have been loaded in April and warned that global oil demand could decline this year for the first time since the COVID pandemic.

Gasoline futures fell over 2% to below $3.10 per gallon on Tuesday, trimming gains in the previous session, as hopes of renewed US–Iran talks resurfaced. US Vice President JD Vance said progress now depends on Tehran after weekend talks failed, saying the “ball is in the Iranian court” after Washington set out its terms, and a deal could benefit both sides if US nuclear conditions are met. President Donald Trump also said Iran had reached out through channels, while President Masoud Pezeshkian said Tehran is open to talks provided they remain within international law. The shift followed the US move to begin a blockade of Iranian ports in the Persian Gulf on Monday, threatening oil flows via the Strait of Hormuz, which averaged about 1.7 million barrels per day last month, tightening physical oil and refined product markets further. Meanwhile, an OPEC report showed Gulf Arab output fell sharply in March amid disruptions, raising concerns that recovery could take longer than expected.

Gasoline futures jumped more than 4% above $3.10 per gallon on Monday, recouping losses from last week, after the US revealed plans to block the Strait of Hormuz amid stalled negotiations with Tehran. The US Central Command said it will begin enforcing a maritime blockade on all vessels entering and leaving Iranian ports from April 13. The measure will cover ships of all nations accessing ports in the Arabian Gulf and Gulf of Oman, while transit through the Strait to non-Iranian destinations will remain unaffected. At the same time, reports suggest that Donald Trump is weighing renewed airstrikes on Iran after previously agreeing to a two-week ceasefire. These developments have revived concerns that the conflict could drag on longer than expected, increasing the risk of deeper global supply disruptions and adding fresh volatility to energy markets.