Why are gas prices dropping and how low will they go?

Key Points:

• The national average price for regular gasoline fell below $4 per gallon for the first time since July, reaching $3.94 as of Wednesday, which is 18 cents lower than last week and over 40 cents lower than a month ago, according to AAA.
• GasBuddy's Patrick De Haan forecasts prices could drop further to between $3.65 and $3.75 by Thanksgiving, though this would still represent the highest fuel prices recorded for the holiday.
• The recent decline in gas prices is attributed to seasonal factors such as reduced driving in colder weather and a switch to cheaper winter gasoline, as well as geopolitical developments including increased oil traffic in the Strait of Hormuz and President Trump's comments on Iran.
• Elevated fuel prices have been linked to geopolitical tensions, including Ukrainian attacks on Russian oil refineries, with ongoing U.S.-mediated peace efforts aiming to resolve conflicts but no immediate breakthroughs expected.
• Senate Republican Leader John Thune acknowledged that high fuel prices significantly impacted voter sentiment and contributed to Republican losses in the recent midterm elections.