Heating oil futures fell more than 1% to below $3.80 per gallon on Tuesday, retracing part of the previous session’s gains as the prospect of renewed US–Iran negotiations re-emerged. US Vice President JD Vance said further progress now depends on Tehran after weekend talks failed to deliver a breakthrough, noting that “the ball is in the Iranian court” following Washington’s latest proposal and that a deal remains possible if US nuclear conditions are met.
President Donald Trump said Iran had reached out through various channels, while Iranian President Masoud Pezeshkian signaled Tehran’s readiness to resume talks provided they are conducted in line with international law.
The price move followed the US decision on Monday to impose a blockade on Iranian ports in the Persian Gulf, a measure that threatens crude flows through the Strait of Hormuz, which averaged around 1.7 million barrels per day last month. At the same time, an OPEC report showed a sharp drop in Gulf Arab production in March due to disruptions, reinforcing concerns that any recovery in supply could take longer than previously expected.
