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Gas prices fall below $4 per gallon as oil supply fears ease after Iran deal
CNBC • • general
Key Points:
- Gasoline prices in the U.S. fell below $4 per gallon for the first time since March 30, averaging $3.99, following an expected increase in oil exports through the Strait of Hormuz after President Trump signed a deal to end the war with Iran.
- Prices have declined for 28 consecutive days after peaking at $4.56 on May 21, marking the longest continuous drop since November 2023.
- The deal with Iran and U.S. Navy assistance in escorting oil tankers through Hormuz have helped stabilize oil prices, though gas prices remain about 30% higher than before the U.S. and Israel attacked Iran on February 28.
- The closure of the Strait of Hormuz by Iran in retaliation caused the largest oil supply disruption in history, as about 20% of global oil passed through the strait before the conflict.
- While the U.S.-Iran agreement is expected to gradually increase oil exports through Hormuz, it remains uncertain when traffic will return to prewar levels.
