FX.co ★ Gasoline Turns Higher

US gasoline futures climbed back above $3.40 per gallon, snapping a two-day losing streak, as fading hopes for a diplomatic breakthrough in the Middle East and the prospect of US diesel export restrictions fueled concerns about tighter fuel supplies. President Donald Trump rejected Iran’s conditional offer to reopen the Strait of Hormuz, reinforcing expectations of prolonged disruption in the key shipping corridor, although he said he still anticipates negotiations to resume this week. In a separate statement, Trump said he is “very seriously” considering a US diesel export ban, acknowledging that such a step could push gasoline prices higher. If enacted, the ban could prompt refiners to scale back crude runs and cut gasoline output, further tightening domestic supply. Even so, other administration officials are exploring alternative measures. Energy Secretary Chris Wright said the administration is seeking voluntary export curbs from refiners, while industry groups have instead called for a suspension of the federal diesel tax.