US Gasoline Falls 13.6% to $3.92 as Iran Talks Raise Strait of Hormuz Supply Hopes
Updated
Updated · abcnews.com · Jun 23
US Gasoline Falls 13.6% to $3.92 as Iran Talks Raise Strait of Hormuz Supply Hopes
2 articles · Updated · abcnews.com · Jun 23
Summary
$3.92 a gallon was the U.S. average on Monday, down 62 cents from a month earlier as gasoline extended its retreat from the Iran-war oil shock.
WTI crude slid more than 20% to about $75.50 a barrel as U.S.-Iran negotiations in Switzerland raised expectations that tanker traffic could resume through the Strait of Hormuz, which carries about one-fifth of global oil supply.
Analysts said pump prices could keep easing in coming weeks—some see $3.50—but much of the expected supply boost is already reflected in prices.
Summer driving demand, reserve restocking, damaged oil infrastructure and possible shipping fees could keep fuel costs above prewar levels, with some experts saying sub-$3 gasoline is unlikely before next year.
The outlook still hinges on the strait after Iranian officials on Saturday threatened a full shutdown in response to Israeli attacks on southern Lebanon, a risk that could quickly reverse the recent relief.