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U.S. Average Gas Price Falls Below $4 After Deal Reopens Strait of Hormuz
The national average for regular gasoline reached $3.99 on June 18, 2026, the lowest level since March 30. The decline followed an agreement between the U.S. and Iran to reopen the Strait of Hormuz.
Jun 18, 3:27 PM·1m read4 sources
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Deal reliefTemporary dip
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U.S. 025 the previous day. The figure marked the first time since March that the cost fell below $4 and the lowest level since March 30.
President Trump and Iranian President Masoud Pezeshkian electronically signed a memorandum of understanding on June 18, 2026. U.S. to lift its naval blockade of Iranian ports within 30 days, and gives Iran 30 days to ensure regular traffic after mine removal.
U.S. oil prices dropped below $74 per barrel on June 18, 2026, the first time since March 5. 4 percent.
Israel, and Iran began on February 28. The Strait of Hormuz had been virtually closed since that date. At least 10 commercial vessels traversed the strait in the week after the agreement was signed.
U.S. and Iran continue moving in a positive direction. He estimated that the cost of regular gas could fall below $3 a gallon by the end of this year or in early 2027, depending on how the situation in the Middle East unfolds.
"One note that could improve the timeline is that Iran is allowed to sell oil on markets again, which could speed up the recovery for global oil inventories," he told CBS News in an email.
