An aerial view seen over Manhattan Beach, California, on April 8, 2026 shows the Chevron EL Segundo Refinery, one of California’s largest petroleum processing facilities.
Mario Tama | getty images
Oil prices fell on Tuesday as traders weighed the US blockade of Iranian shipping and signs that Washington and Tehran may still pursue peace talks.
U.S. crude oil futures for May delivery fell more than 2% to $96.91 a barrel. Brent, the international benchmark for June delivery, was down 1.88% at $97.49 a barrel.
US Vice President JD Vance said on Monday that the next step in US-Iran peace efforts now depends on Tehran, after returning from weekend talks that yielded no breakthrough.
“Whether we have further negotiations, whether we ultimately reach an agreement, I really think the ball is in the Iranian court, because we’ve put a lot on the table,” Vance said in a Fox News interview.
He also said a deal could benefit both sides if US conditions were met, particularly on Iran’s nuclear program.
Oil prices since the beginning of the year
This came as the US on Monday launched a “blockade” of Iranian ports in the Persian Gulf. President Donald Trump said on Sunday the US would lift a blockade of the strait, marking a sharp escalation after a two-week ceasefire.
The United States Central Command later said the measures would only apply to ships entering or leaving Iranian ports and coastal areas.
According to Vivek Dhar of the Commonwealth Bank of Australia, the blockade “directly jeopardizes” Iran’s oil exports through the Strait of Hormuz, which stood at about 1.7 million barrels a day last month.
“Therefore, the blockade tightens the physical oil and refined product markets even more,” he said.
