- 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.
IN FULL
