U.S. gas prices are hovering just below $4 a gallon on average Thursday, marking the first time since March that the cost for regular has fallen that low.
Prices stand at $3.999 compared with $4.025 on Wednesday, dipping overnight after President Trump signed a preliminary deal with Iran to cease hostilities for 60 days and reopen the Strait of Hormuz.
Before the U.S. and Israel launched joint strikes against Iran on Feb. 28, the national average price for a gallon of regular gasoline in the U.S. was $2.98, according to the AAA motor club.
Even as that average has been falling for three straight weeks, the cost of a gallon of gas is expected to remain higher than prewar levels for some time.
As prices at the pump climbed higher during the war, many Americans pointed the finger at Mr. Trump for the soaring costs. He framed it as a temporary pain, telling Americans that the higher prices will last “for a little while” as he sought to prevent Iran from having a nuke.
He berated his critics hours after signing the ceasefire extension.
“These fools, who think I haven’t been tough enough on Iran, when the Stock Market Just Hit A RECORD HIGH, and Oil prices are ’tumbling’ down, are either jealous, bad people, or stupid,” Mr. Trump posted on Truth Social.
When he first touted the agreement Sunday, skepticism was echoed across both sides of the political aisle.
Sen. Bill Cassidy, a Louisiana Republican who lost his primary to a Trump-endorsed candidate, dubbed the administration’s handling of the war “the worst foreign policy blunder in decades.”
“Now, 13 Americans are dead, families have paid billions at the pump, sanctions will be lifted, and the bombing has stopped,” he said Wednesday on social media.
Before the deal was signed, Democrats were ripping Mr. Trump’s dismissiveness about prices after he said in May, “I don’t think about Americans’ financial situation.”
Strategists have warned that high gas prices and tariffs could lead to a shift in key races, with some voters who once supported the president gravitating to Democrats who propose solutions for rising prices.
Lower gas prices may ease consumers’ economic burdens, but it may take time for shipping through the Strait of Hormuz to get back on track.
The memorandum of understanding, signed by Mr. Trump and Iranian President Masoud Pezeshkian, calls for the full reopening of the strait without tolls for at least 60 days, requires the U.S. to lift a naval blockade of Iranian ports within 30 days and gives Iran the same amount of time to ensure regular traffic in the strait, pending the removal of mines.
Several vessels began crossing the vital Persian Gulf shipping route this week.
Brent crude oil, the global benchmark, hit its lowest level since early March, dropping below $75 per barrel Thursday. Brent sat at $72 on Feb. 27, the day before the strikes began.
The U.S. Energy Information Administration, which had forecast Brent prices averaging $105 per barrel in June under the assumption that the strait would remain largely closed, did not anticipate prices falling this far this fast.
Oil has fallen roughly 38% since reaching a four-month high in April.
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