Gas prices in the United States are already starting to drop after President Donald Trump signed a preliminary peace agreement with Iran aimed at ending months of military conflict and reopening the Strait of Hormuz to international trade.
AAA data shows that the national average price for regular gasoline fell below $4 per gallon on Thursday, reaching $3.99. This marks the first time prices have gone that low since March 30. Prices peaked at $4.56 on May 21 amid Iran’s blockade in the strait.
Both Trump and Iranian President Masoud Pezeshkian signed the deal, which extends a ceasefire and sets a 60-day period for both sides to engage in further talks on a variety of issues including sanctions on the regime and its nuclear program.
🚨 NOW: The price of oil is PLUNGING toward $74 PER BARREL following President Trump's peace deal, while the DOW SURGES back toward 52,000
— Eric Daugherty (@EricLDaugh) June 18, 2026
Keep it going! 🔥
Prepare for gas to drop ahead of the midterms! pic.twitter.com/RApQIL89w8
The agreement is expected to increase oil shipments through the Strait of Hormuz, which accounts for about 20 percent of global oil supplies.
“Oil is plummeting down and the stock market is shooting up like a rocket today,” Trump said, celebrating the agreement. He further stated that “a lot of great things are going to happen in the Middle East right now.”
Oil is flowing and gas prices have begun tumbling down, now BELOW $4 per gallon nationally. pic.twitter.com/GJFxRZbovx
— The White House (@WhiteHouse) June 18, 2026
However, some experts have warned that prices would not return to pre-war levels overnight. Patrick De Haan, head of petroleum analysis at GasBuddy said the agreement “certainly could pave the way for even lower prices… in the next two to three days by what we saw over the weekend.”
Still, he noted that “it may take months, if not beyond a year, for global oil inventories to recover to pre-war levels.”
John Deal, managing director of capital markets at the Post Oak Group, explained that “There are some mitigating factors that are going to slow the decline in prices” and that “There are a lot of organisations and companies that have to re-up their stockpiles [like the U.S.’s strategic petroleum reserve] and fulfil contracts that have been on hold for the last few months.”
For now, the decline could offer some relief, especially for those traveling during the summer. If Washington and Tehran reach a permanent peace deal, it could mean that gas prices will remain low for the time being.
Editor's Note: For decades, former presidents have been all talk and no action. Now, Donald Trump is eliminating the threat from Iran once and for all.
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