FX.co ★ Gasoline Slips on Renewed US-Iran Talk Hopes

Gasoline futures slipped more than 1% to below $3.10 per gallon on Tuesday, paring gains from the previous session, as prospects for renewed US–Iran negotiations re-emerged. US Vice President JD Vance said that further progress now hinges on Tehran following unsuccessful weekend talks, noting that “the ball is in the Iranian court” after Washington laid out its terms, and that a deal could benefit both sides if US nuclear conditions are satisfied. President Donald Trump also stated that Iran had made contact through intermediaries, while President Masoud Pezeshkian indicated Tehran is prepared to engage in talks as long as they comply with international law. This diplomatic shift came after the US began a blockade of Iranian ports in the Persian Gulf on Monday, threatening crude shipments through the Strait of Hormuz, which averaged about 1.7 million barrels per day last month and further tightened physical oil and refined product markets. At the same time, an OPEC report showed a sharp decline in Gulf Arab output in March due to disruptions, fueling concerns that a recovery may take longer than previously expected.