FX.co ★ Gasoline Futures Drop 10%

Gasoline futures fell more than 10% to below $3 per gallon on Wednesday, reaching their lowest level in nearly four weeks, after Iran agreed to temporarily reopen the Strait of Hormuz as part of a two-week ceasefire with the US and Israel. Iranian Foreign Minister Abbas Araghchi said the passage would be overseen in coordination with the country’s armed forces, taking into account technical constraints. President Donald Trump had previously emphasized that the ceasefire was contingent on Iran reopening the key waterway, a prerequisite for finalizing the agreement. Reports also indicated that Israel would halt airstrikes while talks are underway, with the first round of US-Iran negotiations set to begin on Friday in Islamabad. The announcement came less than two hours before Trump’s deadline for Iran to reopen the strategic strait or face targeted strikes on its power plants and bridges.