Gas prices fall below $4 on average after Trump’s signing of Iran deal to end war | US news
The average price of U.S. gasoline fell just below $4 per gallon for the first time on Thursday since MarchFollowing the announcement of a preliminary agreement between the United States and Iran to end the war and reopen the Strait of Hormuz.
This development has provided some relief to drivers who have seen costs soar in central Washington. war with Iran. But refueling is still more expensive than before the conflict began.
By motor club AAAThe current national average price for a gallon of regular gasoline is $3,999, marking the first time prices have been this low in months. The decline is parallel to: easing crude oil costs There is generally some optimism first deal Between the USA and Iran.
Still, American drivers pay roughly $1 more per gallon than they did before the United States joined Israel in attacking Iran in February. Gas prices are also about 25% higher than a year ago, putting a strain on the budgets of many households across the country.
Gas wasn’t the only thing that became expensive during the war. High gasoline prices have also contributed to increased airline fares, while the cost of consumer goods such as groceries and shoes has also increased due to disruptions in the global supply chain.
Even as oil and other essential goods such as fertilizer start flowing again from the Middle East, sticker shock will persist, experts warn will probably outlast the war.
“Product prices across the U.S. are expected to continue rising through the remainder of 2026,” Patrick Penfield, professor of supply chain practices at Syracuse University, told The Associated Press on Thursday.
Penfield pointed to depleted stocks and ongoing supply chain consequences since the war. For example, he noted that farmers already have to pay higher costs for fertilizer and other materials in the spring, which “will be reflected in rising food prices in the fall.” At the gasoline pump, he noted that limited refinery capacity in the U.S. “remains a significant bottleneck” in reducing prices.
Rising fuel costs have already pushed inflation in the United States to its highest level in the last three years. And many consumers are still filling up their tanks for much more than $4 per gallon.
This price is a national average; Costs vary between states due to factors such as proximity to supply and different tax rates. Regular gasoline averaged $5.64 a gallon in California on Thursday, according to AAA, followed by $5.57 in Hawaii. By contrast, in Indiana and Texas, prices were around $3.40 and $3.49 per gallon.
The latest relief in fuel prices came with the cooling costs of crude oil, the main ingredient of gasoline. Brent crude oil, international standard, fell below $78 per barrel on ThursdayU.S. benchmark crude oil fell to just over $74 a barrel. This is still slightly higher than the roughly $70 level before the Iran war, but well below the over $100 price seen a few weeks ago.
Major shipowners reportedly Transport of ships started According to maritime data from Lloyd’s List Intelligence, the Strait of Hormuz was transited after the memorandum of understanding was signed on Wednesday; but some operators just reported this more limited side shipping routes It was clear.
On Thursday, US Central Command released a statement. expression He said he was lifting the blockade on all maritime traffic entering and exiting Iranian ports and coastal areas in the Strait of Hormuz.
“American forces do not prevent the passage of ships going to or coming from Iranian ports in the Persian Gulf and the Gulf of Oman,” the statement said.
Despite these improvements, experts warn that it may take weeks or months for traffic to return to pre-war levels.
Associated Press contributed reporting
