Gas prices sink for sixth week in a row — down 14% from May peak amid US-Iran talks

Key Points:

• US gasoline prices have fallen for the sixth consecutive week, dropping 14% from their May peak to a national average of $3.93 per gallon, following President Trump's tentative peace deal with Iran.
• Oil prices have also declined below $80 per barrel, down from highs of $126 during the war, contributing to easing inflation and potentially benefiting the GOP in upcoming midterm elections.
• Despite the tentative agreement, tensions remain as Iran has reportedly blockaded the Strait of Hormuz again and negotiations broke down after Trump threatened military action during talks in Switzerland.
• The US has waived oil sanctions on Iran for 60 days, allowing Iran to potentially earn up to $10 billion, but full normalization of tanker traffic and energy supply repairs could take six months to two years.
• Experts caution that gasoline prices are unlikely to fall below $3 per gallon until winter, due to ongoing regional instability, logistical challenges, and safety concerns such as Iranian-laid mines in the Strait of Hormuz.