U.S. Gasoline Prices Average $4 per Gallon After Iran Strait Deal

U.S. gasoline prices averaged about $4 per gallon in the most recent week after a deal between the United States and Iran reopened the Strait of Hormuz. The agreement, signed this week, ends the war in Iran, reopens the strait, and starts a 60-day negotiation period.

Crude oil and gasoline prices have ticked down since the announcement. One year earlier the national average stood at approximately $3 per gallon. 50 per gallon before the agreement.

40 per gallon. 60 per gallon. Iran closed the Strait of Hormuz in March. Before the closure, about 70 tankers per day transited the 21-mile-wide passage.

By May, traffic had fallen to about 5 ships per day. The strait normally carries about 20 percent of the world’s oil supply. Time reported that the closure produced the largest disruption of global oil supplies since World War II.

Iran also laid mines around the strait and launched drones and missiles that damaged operating facilities in Arab Gulf countries. S&P Global counts more than 100 oil-laden tankers, 120 additional petroleum-product tankers, and more than 1,000 other ships stranded in the Gulf. 2 billion barrels of oil because of the closure and the halt in exports.

Eighty percent of Persian Gulf oil normally flows toward Asia, and one-third of the world’s traded fertilizer passes through the strait. ” With the reopening, tankers will exit the Gulf as quickly as possible but will move cautiously when returning for new cargoes, one tanker operator told Time this week. The backlog cannot clear all at once because of the mines.

Even with the strait open, inventories drained during the disruption must be refilled, keeping prices above last year’s levels through the summer. In 2025, one in four cars sold worldwide was an electric vehicle, according to S&P Global data.