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US Gasoline Prices Fall Below $4 a Gallon on US-Iran Deal

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Average prices for regular gasoline in the US dropped to their lowest level since March at just below $4 per gallon on Thursday, according to the American Automobile Association, after the US and Iran signed an interim agreement to end war and reopen the Strait of Hormuz.

Data from the AAA gas prices website showed that the national average slipped to $3.999/gal, with Indiana cheapest at $3.399/gal.

Since prices peaked at $4.56 on May 21, regular gasoline has posted a downward trajectory as crude oil declined on hopes that a peace deal would be reached.

However, experts cited by CNN said prices will not immediately return to pre-war average of $3/gal.

A report by Bloomberg, citing analysts, said pre-war levels will likely be reached next year.

In terms of inventory, US gasoline stocks plunged to 214.2 million barrels in the week ended June 12, from 253.1 mmbbls in late February before the US-Iran war began.

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