US gas prices dip below $4 for first time since March, linked to Iran deal

For the first time since March, the average price of gasoline across the United States has fallen below $4 per gallon, providing welcome relief to consumers. This significant dip, with the national average reported at $3.999 per gallon, is largely attributed to a recent agreement between the U.S. and Iran. The accord, finalized by President Donald Trump, involves Iran reducing its highly enriched uranium stockpile in exchange for the lifting of certain U.S.-backed sanctions.

This deal has helped ease tensions and facilitated the reopening of the Strait of Hormuz, a crucial waterway for global oil shipments that had been disrupted by a conflict that began in late February 2026. The improved prospects for increased Iranian oil exports have led to a notable drop in crude oil prices, which had soared to over $125 per barrel in May 2026, pushing gas prices to a peak of $4.56 per gallon. The recent agreement has seen U.S. crude oil prices tumble, contributing to the current decline at the pump.

While the drop below the $4 mark is a psychological milestone for many drivers, experts caution that prices remain considerably higher than before the conflict, when they hovered below $3 a gallon. A full return to pre-war levels is not anticipated anytime soon, as challenges such as normalizing tanker traffic through the Strait of Hormuz and replenishing global fuel stockpiles are expected to take several months. Furthermore, limited refinery capacity in the U.S. continues to pose a bottleneck for further price reductions.