WTI Crude Drops Over 11% to $90 on Reports of U.S.-Iran Preliminary Agreement
ZeroHedge reported WTI futures plunged more than 11 percent following Axios reports of a preliminary U.S.-Iran agreement to end the war. National gasoline averages reached $4.50 per gallon as of Wednesday morning, the highest since July 2022, while the Trump administration seeks resolution ahead of Memorial Day weekend.
thehindu.comU.S. is nearing a preliminary agreement with Iran to end the war. 50 a gallon as of Wednesday morning, according to AAA.
This level is the highest since July 2022. California gasoline prices are above $6 a gallon. President Trump said he expects the price of gasoline to drop substantially following the end of the US-Iran war.
He added, "They can't do much with it because they got kidnapped by a pretty evil place. " Last week President Trump said pump prices would come crashing down as soon as this war is over. GasBuddy analyst Patrick De Haan warned that the $5-a-gallon threshold is typically the "shock and awe" level that triggers demand destruction.
50 a gallon. Lower crude prices typically take a few weeks to work through wholesale markets, inventories, distribution networks, and retail outlets before meaningful declines appear at pump stations.
U.S. Driving periods of the year after Thanksgiving. The Trump administration is pushing hard for a near-term Iran resolution ahead of Memorial Day weekend.
Key Facts
Story Timeline
4 events- Last week
President Trump said pump prices would come crashing down as soon as this war is over.
1 sourcePresident Trump - Monday
President Trump held a press conference and stated he expects gasoline prices to drop substantially and rapidly after the war ends.
1 sourcePresident Trump - Wednesday morning
AAA reported the national average for regular 87-octane gasoline reached $4.50 a gallon, the highest since July 2022.
1 sourceAAA - This morning
Axios reported the U.S. is nearing a preliminary agreement with Iran to end the war; WTI futures plunged more than 11% to $90 a barrel.
2 sourcesAxios · ZeroHedge
Potential Impact
- 01
Gasoline prices at the pump are unlikely to fall immediately even if a deal is reached, due to the multi-week lag through wholesale and retail channels.
- 02
Traders appear to be pricing in reduced geopolitical risk and potential reopening of the Hormuz chokepoint.
- 03
Consumer and political pressure on the administration may intensify if prices approach $5 before Memorial Day weekend.
Transparency Panel
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