US gasoline futures fell more than 5% to around $2.90 per gallon on Wednesday, erasing the previous session’s gains, as growing prospects for a potential ceasefire in the Middle East tempered concerns about disruptions to global oil supplies. President Donald Trump stated that the US and Iran are engaged in negotiations, though Tehran has denied holding any direct talks. Media reports also suggested that Washington has presented Iran with a 15-point proposal aimed at ending the conflict.
Energy markets have remained highly volatile since the outbreak of hostilities. Gasoline prices are still up over 30% so far this month and recently hit their highest level since July 2022, supported by supply disruptions in the Strait and the seasonal transition to more expensive summer-grade fuel blends. At the same time, the Trump administration is reportedly preparing to widen summer sales of higher-ethanol E15 gasoline by issuing waivers to US fuel volatility requirements.