An aerial view shows the Chevron EL Segundo refinery, one of the largest petroleum processing facilities in California, on April 8, 2026 as seen from above Manhattan Beach, California.
Mario Tama | Getty Images
Oil prices fell Tuesday as traders weighed a U.S. blockade of Iranian shipping and signs that Washington and Tehran could still continue peace talks.
U.S. crude oil futures for May delivery fell more than 2% to $96.91 per barrel. International benchmark Brent for June delivery was last down 1.88% at $97.49 per barrel.
U.S. Vice President JD Vance said Monday that the next steps in U.S.-Iran peace efforts now depend on Tehran, after returning from weekend talks that failed to produce a breakthrough.
“Whether we have further conversations, whether we ultimately get to a deal, I really think the ball is in the Iranian court, because we put a lot on the table,” Vance said in a Fox News interview.
He also noted that an agreement could benefit both sides if U.S. conditions, particularly on Iran’s nuclear program, were met.
Oil prices since the start of the year
This comes as the U.S. commenced a “blockade” of Iranian ports in the Persian Gulf on Monday. President Donald Trump had said Sunday that the U.S. would blockade the strait, marking a sharp escalation following a two-week ceasefire.
United States Central Command later said the measures would apply only to ships entering or leaving Iranian ports and coastal zones.
The blockade “directly endangers” Iran’s oil exports through the Strait of Hormuz, which tracked at around 1.7 million barrels per day last month, according to Commonwealth Bank of Australia’s Vivek Dhar.
“Therefore, the blockade tightens physical oil and refined product markets even further,” he said.
