Gasoline prices dropped below $4 per gallon on Thursday, driven by expectations of increased oil exports through the Strait of Hormuz following President Trump’s signing of a deal to end the war with Iran.
This is the first time prices have dropped below $4 since March 30, according to American Automobile Association data.
Oil prices have dropped for 28 consecutive days since hitting a peak of $4.56 on May 21, marking the longest decline since November 2023.
Trump has indicated for weeks that a deal with Iran was imminent, which has helped prevent oil prices from rising further. The U.S. Navy has also assisted oil tankers in passing through Hormuz since early May.
The U.S.-Iran agreement is likely to lead to a gradual rise in oil exports through the Strait of Hormuz, but it remains unclear when shipping through the strait will return to prewar levels.
US stock futures also climbed on Thursday, with the tech-heavy Nasdaq 100 surging 1.3%, while the S&P 500 moved up 0.6%.
By CEO NA Editorial Staff
