Gasoline prices fell below $4 a gallon on Thursday as oil exports through the Strait of Hormuz are expected to increase after President Donald Trump signed a deal to end the war with Iran.
The average payment for U.S. drivers was $3.99, dropping below $4 for the first time since March 30, according to data shared by AAA.
The price has fallen for the past 28 consecutive days since peaking at $4.56 on May 21st, making it the longest consecutive price decline since November 2023.
President Trump has been hinting for weeks that a deal with Iran is near, helping to keep oil prices in check. The US Navy has also been supporting oil tankers via Hormuz since early May.
But gas prices are still 30% higher compared to what drivers paid before the US and Israel attacked Iran on February 28th. The Iranian government retaliated by attacking commercial ships and effectively blockading Hormuz.
The closure of Hormuz Island caused the largest oil supply disruption in history. Before the war, about 20% of the world’s oil supply passed through this strait.
The US-Iran deal is expected to gradually increase oil exports through Hormuz, but it is unclear when traffic in the strait will return to pre-war levels.
