US gasoline prices fall below $4 after Strait of Hormuz deal

Drivers are finally getting some relief at the pump. U.S. average retail gasoline prices slipped below $4 a gallon for the first time since mid-April, with AAA putting the national average for regular gasoline at $3.999 on June 18.

The drop followed a sharp shift in oil markets after President Donald Trump announced a preliminary U.S.-Iran deal tied to reopening the Strait of Hormuz, the narrow passageway that carries a large share of global oil supplies. Crude oil fell more than $4 a barrel on the news, easing the risk premium that had been building into fuel prices after spring supply fears pushed gasoline higher.

AAA said the national average had been falling for three straight weeks. The price moved from $4.56 on May 21 to $4.24 on June 4 and then to $4.12 on June 11 before finally slipping under the $4 mark. GasBuddy analyst Patrick De Haan said the national average had fallen below that threshold for the first time in many months, ending a long stretch of politically sensitive pricing.

The decline comes at a useful moment for U.S. motorists, who are heading deeper into the busy summer travel season after a Memorial Day spike and ahead of the July Fourth holiday. AAA said drivers were already seeing prices ease even as they planned more highway miles, a shift that can quickly translate into real savings for households filling larger tanks multiple times a week.

Still, the relief may not last. The Associated Press reported that even with a deal to reopen the Strait of Hormuz, it could take weeks or months for oil to fully flow again. That means gasoline prices could remain uneven while traders watch whether diplomacy delivers a durable reopening or only a short-lived pause in Middle East supply worries.

For now, the key number is simple: $3.999. After weeks of volatility, the national average has moved back under $4, a level that often shapes consumer sentiment as much as it does household budgets. Whether that marks the start of a steadier decline, or only a temporary dip tied to the latest breakthrough between the United States and Iran, will depend on how quickly oil moves through the Strait of Hormuz in the weeks ahead.