FX.co ★ Gasoline Futures Drift Lower

US gasoline futures slipped below $3.20 per barrel after a two-day advance, as traders weighed Middle East developments against fresh inventory data. API figures showed a 5.2 million-barrel draw in gasoline stocks last week, but EIA data indicated inventories still stood about 1% above the five-year average.

On the geopolitical front, US–Iran peace talks have stalled, with President Trump maintaining the Strait of Hormuz blockade despite an extension of the truce. This followed reports that Vice President JD Vance’s planned trip to Pakistan for discussions on Iran was postponed, while Tehran, through a Pakistani intermediary, notified US officials it would not participate in further talks. Since late February, crude flows from the Persian Gulf have been reduced by around 13 million bpd, according to the IEA.

Separately, Energy Secretary Chris Wright said the recent spike in US gasoline prices appears to have peaked, after a 35% increase over the past seven weeks. Elsewhere, Russia has resumed Urals crude exports from key western ports following weeks of disruption from drone attacks.