Average US gas price drops below $4 - barely

Key Points:

• The US national average price for regular gasoline has fallen below $4 per gallon for the first time since March 30, reaching $3.999, with Indiana having the lowest average at $3.40.
• This price drop coincides with the planned reopening of the Strait of Hormuz, which had been closed since late February, cutting off about 20% of the world's oil supply and driving prices up.
• Experts warn that it will take several months to restore normal oil flow through the strait and longer to replenish supplies, as regional oil production and refining were disrupted or damaged during the conflict.
• Despite the recent decline, gas prices are unlikely to return to pre-war levels near $3 per gallon soon, due to ongoing global market dynamics, repair timelines, and the slower pace at which gas station owners reduce prices compared to how quickly they raised them.
• With oil inventories at historic lows and the summer driving season approaching, some experts predict gas prices could rise above $4 per gallon again, establishing a new, higher "normal" price level.