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, after Vice President JD Vance indicated that U.S. and Iran could meet for another round of talks after peace negotiations failed last weekend.
U.S. crude oil futures for May delivery were down 5% to $93.99 per barrel as of 10:01 a.m. ET. International benchmark Brent for June delivery was down about 3% at $96.17 per barrel.
“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.
The International Energy Agency forecast Tuesday that the oil supply shock triggered by the Iran war will depress demand this year as consumers respond to surging fuel prices.
Oil demand could contract the most since the Covid-19 pandemic cratered fuel consumption, according to the IEA’s April forecast. Demand is expected to fall by 80,000 barrels per day, a big swing compared to the IEA’s previous expectations that consumption would grow by 640,0000 bpd.
U.S. oil prices year-to-date
Meanwhile, 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.
