- The average price of a gallon of gas in the U.S. fell below $4 for the first time in nearly four months Thursday, reaching $3.999 after a peace deal was signed overnight between the U.S. and Iran.
- This deal is anticipated to reopen the Strait of Hormuz, a vital passage for oil and natural gas, which had been closed since Trump attacked Iran on Feb. 28, contributing to a historic energy crisis and pushing oil prices past $100.
- Despite the recent price drop, energy consultancy Rapidan Energy Group forecasts that gas prices are unlikely to dip below the pre-war $3 mark until 2027 due to persistent low inventory levels, with a more significant decline expected in the winter.
- “We therefore expect gasoline prices to remain elevated through the summer,” Giesecke told The Independent. “A material weakening in gasoline prices is more likely in the winter, with an easing in crude prices and switch to winter-grade gasoline. Even then, $3 [per gallon of] gas seems unlikely any time soon.”
- Fluctuations in gas prices remain across the country. In California, gas prices are averaging $5.64 per gallon, while in South Carolina it’s $3.58 per gallon.
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