Key facts
- US gasoline prices have fallen below $4 a gallon for the first time since March.
- The national average price for regular gasoline is $3.999.
- A preliminary agreement between the US and Iran aims to end the war and reopen the Strait of Hormuz.
- Brent crude fell below $78 a barrel, and US benchmark crude dropped to just over $74 a barrel.
- US Central Command has lifted its blockade on maritime traffic entering and exiting Iranian ports in the Strait of Hormuz.
US gasoline prices have fallen below $4 a gallon for the first time since March, offering consumers relief. The national average price for a gallon of regular gasoline stands at $3.999, according to AAA. This development follows a preliminary agreement between the US and Iran to end the war and reopen the Strait of Hormuz, a critical oil shipping route through which about one-fifth of the world's oil flows.
Brent crude fell below $78 a barrel on Thursday, while US benchmark crude dropped to just over $74 a barrel, down from pre-war levels around $70 but significantly below the $100-plus prices seen weeks ago. Despite the relief, drivers are paying roughly $1 more per gallon than before the conflict began, and prices are about 25% higher than a year ago.
Experts warn that sticker shock may persist due to depleted inventories and ongoing supply chain consequences. Patrick Penfield, a professor at Syracuse University, cited limited refinery capacity in the US as a significant bottleneck. He also noted that increased costs for farmers for fertilizer will likely lead to higher food prices by autumn.
US Central Command stated it has lifted its blockade on all maritime traffic entering and exiting Iranian ports in the Strait of Hormuz, though experts caution it could take weeks or months for traffic to return to prewar levels.