Overview
- The national average for regular gasoline fell to about $3.999 per gallon, according to AAA, marking the first time the average has been under $4 since late March.
- Markets moved after President Donald Trump signed a preliminary memorandum with Iran that is designed to reopen the Strait of Hormuz, a route that previously carried roughly one‑fifth of global seaborne oil.
- U.S. crude benchmarks slid into the mid‑$70s per barrel as traders priced in increased shipments, but analysts warn tanker traffic, insurance and damaged regional facilities mean full restoration will take weeks to months.
- Commercial and government stocks including the Strategic Petroleum Reserve are at unusually low seasonal levels, which limits how fast retail prices can return to pre‑war norms.
- State and regional averages vary widely with about 28 states already under $4 and some West Coast markets still far higher, and analysts say the near‑term outlook is fragile and could reverse if the diplomatic framework weakens.