FX.co ★ Gasoline Rises as Markets Gauge Iran Peace Prospects

US gasoline futures climbed above $3.20 per gallon on Wednesday, rebounding from a brief pullback in the previous session, as markets assessed the credibility of emerging signs of de-escalation in the Middle East conflict. President Trump said the US could withdraw from Iran within two to three weeks and argued that a formal agreement with Tehran is not necessary for hostilities to end. Still, markets remained wary as his stance shifted between hinting at a near-term resolution and warning of possible renewed escalation.

At the same time, additional US troops were deployed to the region, while Tehran stated that no peace talks are currently underway but signaled it is prepared to end the war if its conditions are met. Meanwhile, gasoline futures recorded a historic 30% monthly surge in March, fueled by a broader supply shock stemming from disruptions in the Strait of Hormuz, where the flow of roughly 20% of global oil has been nearly halted since the conflict began.