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Gas prices fall below $4 on average after Trump’s signing of Iran deal to end war
The Guardian • • general
Key Points:
- The average price of US gasoline dropped to just under $4 a gallon for the first time since March, following a preliminary agreement between the US and Iran to end the war and reopen the Strait of Hormuz.
- Despite the price decline, gasoline remains about $1 more expensive per gallon compared to pre-war levels and roughly 25% higher than a year ago, continuing to strain household budgets.
- Rising fuel costs have contributed to increased prices for airline fares and consumer goods, with experts warning that inflationary pressures and supply chain disruptions may keep product prices climbing through 2026.
- The US Central Command has lifted its blockade on maritime traffic in the Strait of Hormuz, allowing some vessels to resume passage, though full traffic normalization could take weeks or months.
- Crude oil prices have eased, with Brent crude falling below $78 a barrel and US benchmark crude around $74, helping to reduce gasoline costs but still remaining above pre-war levels.
