Updated
Updated · The New York Times · Jun 18
U.S. Gasoline Drops Below $4 as Iran-US Hormuz Deal Cuts Oil 10%
Updated
Updated · The New York Times · Jun 18

U.S. Gasoline Drops Below $4 as Iran-US Hormuz Deal Cuts Oil 10%

3 articles · Updated · The New York Times · Jun 18

Summary

  • AAA put the U.S. average for regular gasoline at a fraction of a penny below $4 a gallon on Thursday, down from $4.03 a day earlier and the first sub-$4 reading in months.
  • The drop followed a 60-day Iran-U.S. ceasefire memorandum and plans to reopen the Strait of Hormuz, easing fears over Middle East energy flows after oil fell about 10% this week.
  • Pump prices had surged from just under $3 before the late-February war to around $4.50 in May, and they still remain about one-third above prewar levels despite the recent retreat.
  • Diesel also eased to $5.13 a gallon from more than $5.60 a month ago, though economists say lower crude takes time to filter through and West Coast gasoline remains well above $4.

Insights

Beyond oil, when will vital supply chains for food and tech fully recover from the Hormuz shutdown?
With major issues unresolved, is the 60-day U.S.-Iran truce just a pause before the next global supply crisis?