FX.co ★ Gasoline Futures Slip

US gasoline futures slipped to about $3.20 per gallon on Monday, as traders weighed renewed Middle East ceasefire efforts against a new ultimatum on Iran from President Donald Trump. The US, Iran, and regional mediators were reportedly discussing a possible 45-day truce, though the chances of even a partial agreement within the next 48 hours were seen as low. At the same time, Iran indicated that Iraq would be exempt from restrictions in the Strait, a move that could help support oil flows, with SOMO confirming that Iraqi cargoes can be loaded without limitation. Meanwhile, President Trump warned on social media of severe repercussions if Iran does not reopen the passage, including potential strikes on critical infrastructure such as power plants and bridges. Elsewhere, OPEC+ agreed to increase production by 206,000 bpd in May, although the closure of Strait routes and damage to infrastructure may limit how much crude ultimately reaches global markets.