Relief at the Pump: Gas Prices Fall Below $4 for First Time Since March
· Telemundo McAllen (KTLM)
Gas prices in the United States dropped below $4 per gallon on average on Thursday, but just barely. This marks the first time since March that the average cost of a gallon of regular gasoline has been this low. Prices fell overnight after U.S. President Donald Trump signed an agreement with Iran requiring Tehran to dilute its highly enriched uranium reserves and lifting Washington-backed sanctions against the country. According to the AAA auto club, the average gas price is now $3.999 in the U.S. The drop below $4 comes after a 15% decline in U.S. crude oil prices this month. However, gas price fluctuations remain across the country. In California, prices average $5.64 per gallon, while in South Carolina, they are $3.58 per gallon. The agreement between Washington and Tehran includes a permanent end to hostilities and initiates a 60-day negotiation period to reach a final agreement on the future of Iran's nuclear program, although Trump left open the possibility of resuming attacks. Reportedly, the plan offers Iran several entry benefits while giving little in return. Oil prices fell on Monday to around $80 per barrel of U.S. benchmark crude, compared to $67 per barrel before the war and the more than $120 per barrel previously reached during the conflict. While gas prices are starting to drop, it is expected to take weeks or months for oil to flow again through the Strait of Hormuz. One-fifth of the world's crude passed through the strait before the war. Now, it will take time for hundreds of ships trapped in the Persian Gulf to exit through the narrow strait, and Gulf oil producers who reduced output will need time to bring oil back into circulation. Analysts also note that ship captains may take their time deciding whether the passage is safe and if the threat of an attack by Iran has truly diminished. Additionally, refineries typically pay for crude a month or more in advance, so even after oil prices drop, they will not be processing cheaper products immediately. Fighting over the Strait of Hormuz disrupted not only crude and refined fuel supplies but also supply chains for fertilizers, food, and even footwear. Businesses expect higher costs to persist, meaning their customers may also need to prepare for this.
AI summary · Source: Telemundo McAllen (KTLM) →
