Overview
- The national average price slipped to about $3.999 per gallon on Thursday, according to AAA, marking the first sustained move under $4 since March.
- Traders pushed global crude prices down toward $78–$80 a barrel after reports of the U.S.-Iran agreement to end hostilities and reopen the Strait of Hormuz.
- Analysts say the decline is largely sentiment driven because tanker routes, damaged facilities and halted production will take months to restore.
- Prices remain well above year-ago and pre-war levels and vary widely by state, with California averaging about $5.64 per gallon and Indiana near $3.39.
- Lower pump prices ease household costs and could ease inflationary pressure ahead of the midterms, but markets warn the trend could quickly reverse if the deal stalls or disruptions resume.