The average price of gasoline in the United States dropped below $4 for the first time since mid-April.
The national average price of gasoline has fallen 9.3 cents over the last week and stands at $3.99 per gallon, according to GasBuddy data posted Monday. Data is compiled from more than 12 million price reports covering 150,000 gas stations across the country.
The national average is down 52.4 cents from a month ago and is 91.1 cents per gallon higher than a year ago, GasBuddy said.
U.S. officials were scheduled to sign a deal on Friday to end the war in Iran, The Washington Post reported. Even if the deal is agreed as planned and the Strait of Hormuz opens on Friday, experts said it could still take months for normal commerce to resume through the strait.
Roughly 20% of global oil and product flows traversed the strait before the war started in February.
“Average gasoline prices fell in 47 states over the last week, with the national average dropping below $4 per gallon late Sunday for the first time since mid-April,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “The decline came as oil prices moved sharply lower in reaction to news of a potential deal between the United States and Iran, though it remains to be seen whether the agreement will hold. A handful of price-cycling states saw averages jump before joining the broader downward trend.”
The real test now shifts to the Strait of Hormuz, De Haan said. A reopening and resumption of normal oil flows would be the clearest signal that this relief is durable, he said.
“For now, the national average could continue falling, provided there isn’t a drastic reversal, and the U.S. and Iran continue moving in a positive direction,” De Haan said.
GasBuddy is owned by Alpharetta, Georgia-based PDI.
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