US gasoline futures fell back below $3.20 per gallon on Tuesday, easing from a historic 30% monthly surge after a major diplomatic overture from Tehran. The pullback followed remarks by Iranian President Masoud Pezeshkian, who signaled readiness to end regional hostilities if Western powers provide concrete guarantees and reparations.
His shift in tone aligns with recent efforts by President Trump to de-escalate tensions and potentially normalize tanker traffic through the Strait of Hormuz, where roughly 20% of global oil supply has remained disrupted throughout March. Expectations of improved supply weighed on energy benchmarks, but the relatively modest price decline underscored persistent market skepticism, shaped by the recent damage to the Al-Salmi tanker and the ongoing deployment of US troops to the Middle East.
Even with Tuesday’s retreat, gasoline remains on course for its largest monthly advance on record, driven by a broader supply shock stemming from the near-total closure of critical shipping corridors.
