Oil prices fall, stocks rise after U.S.-Iran deal announcement

Oil prices fell and stocks climbed after President Trump announced that the United States and Iran had reached a deal, with markets betting the agreement could ease global energy supply concerns. Drivers are unlikely to see immediate relief at the pump, because crude oil has to flow through refineries, wholesale terminals, distribution networks and local taxes before a cheaper barrel reaches a street-corner price sign.

Gasoline was already easing before the announcement. AAA said the national average for regular gasoline fell from $4.56 on May 21 to $4.42 on May 28, then to $4.24 on June 4 and $4.065 on June 15. AAA also said on June 11 that the national average had dropped to $4.12 from $4.56 since May 21, as crude stayed below $100 a barrel. Even with that decline, Americans were still paying about 37% more at the pump than before the war began, and the national average was $4.07 on Monday, down from $4.53 a month earlier.

The lag from oil to pump prices is built into the business. Refiners buy crude, process it into gasoline and diesel, and move it through wholesale markets before retailers reset prices. That pass-through is uneven across the country because pipeline access, refinery supply, transportation costs and state and local taxes differ from region to region. When crude falls, wholesale prices usually move first; roadside signs often follow later, and sometimes only after stations work through inventory bought at higher costs.

The broader energy backdrop still matters. AAA warned on May 28 that the fragile Iran situation could send oil prices higher again if a ceasefire deal failed. The U.S. Energy Information Administration said higher crude prices had lifted wholesale gasoline, diesel and jet fuel prices, and that the largest price changes in the second quarter of 2026 were tied to supply concerns related to the Strait of Hormuz. The agency expects crude oil prices to fall to their lowest annual average since 2020 and says crude’s contribution to the retail average gasoline price should fall below 45% on an annual average basis in 2026 and 2027.