A tentative US-Iran agreement to end hostilities sparks expectations for lower gasoline prices, with the national average at $4.06 per gallon.
Gasoline prices in the US are expected to fall below $4 per gallon following a tentative deal to end the Iran conflict. President Donald Trump announced the agreement, which Iran confirmed, with a signing scheduled for Friday. The deal could ease disruptions in the Strait of Hormuz, a critical oil shipping route.
The national average price for a gallon of gasoline stood at $4.06 on Monday, down from $4.52 a month ago and $3.13 a year earlier. Analysts caution that price declines may be gradual, as oil markets often adjust slowly after geopolitical shocks.
Oil prices dropped and stock-market futures rose after the announcement, reflecting optimism about restored supply flows. The US Energy Information Administration notes that oil costs account for over half of gasoline prices.