U.S. gas prices drop below $4 mark for first time since March 30
by Joe Fisher · UPIJune 18 (UPI) -- The average price of a gallon of regular gas in the United States dropped below $4 Thursday, marking the first time prices have been this low since March 30.
AAA reports the average price of gas has reached $3.99 per gallon following the United States and Iran coming to terms on a peace agreement.
President Donald Trump and Iranian President Masoud Pezeshkian have signed a memorandum of understanding to end the war in Iran. As part of the agreement, the United States will end its naval blockade on the Strait of Hormuz and Iran will also allow ships to use the strait.
After the Strait of Hormuz was blocked, following strikes on Iran by the United States and Israel, gas and oil prices climbed around the globe, setting off a historic shortfall of fuel supply. About one-fifth of the world's gas and oil is transported through the strait.
At its peak, the average price of regular-grade gas was $4.56 per gallon in the United States. This price was reached on May 21.
As prices continue to come down, they remain 30% higher than they were before the Iran war started on Feb. 28.
Prior to the war, U.S. gas prices had not reached a $4 average since Russia invaded Ukraine in February 2022.
The price of Brent crude oil fell below $80 on Wednesday and has continued to come down since, reaching $76 per barrel on Thursday. In April, Brent crude oil topped out at $126 per barrel.
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President Donald Trump speaks to reporters about restoring commercial fishing access to areas of the Pacific during a signing ceremony in the Oval Office of the White House on Thursday. Photo by Jim Lo Scalzo/UPI | License Photo