Gasoline futures for delivery in New York Harbor fell more than 4% to around $3.30 per gallon, the lowest level in over four weeks, as renewed optimism over a potential US–Iran agreement eased fears of severe disruptions to global energy supplies. President Trump said talks with Iran were progressing constructively, while emphasizing that Washington would not rush into a deal. He noted that an agreement, potentially including the reopening of the Strait of Hormuz, could be announced soon, but confirmed that the US blockade would remain in place until negotiations are concluded.
According to the IEA, energy exports from the region have been largely halted since early March, driving global oil inventories lower at a record pace, even as gasoline futures remain more than 80% higher year-to-date. At the same time, US gasoline inventories declined for a 14th consecutive week in mid-May, as refineries operated near full capacity using crude drawn from the Strategic Petroleum Reserve. Output of gasoline was further limited as refiners shifted yields toward distillates to help avert diesel and jet fuel shortages.
