The average cost of a gallon of gas nationwide has dropped below $4 for the first time since March.
Daily data released by AAA on Thursday showed that across the US, the average gas price is now $3.99 per gallon.
In California, where gas prices are generally highest, the average price per gallon was $5.64 on Thursday, while the cheapest state was Indiana, where the average price per gallon was $3.39.
Gas prices jumped from less than $3 in February after the start of the US-Iran war, reaching a peak of more than $4.50 in late May.
The war crippled global oil supply by leading to the closure of the Strait of Hormuz, a critical Iran-controlled waterway through which about 20% of the world's oil and liquefied natural gas flows. This, in turn, pushed crude prices sharply higher.
Oil prices have moved in lockstep with escalations and de-escalations in the conflict, jumping on major military actions and falling when an end to the war seems close.
Prices tumbled this week after the US and Iran agreed to a deal to end the war, with Brent crude, the global benchmark, dropping to under $78 per barrel on Thursday following news that the US and Iran had signed a memorandum of understanding.
It reached a high of nearly $120 per barrel in late March.
Pakistan's Prime Minister, Shehbaz Sharif, who has been a key mediator of the deal, said in an X post on Thursday that "Iran will instantly reopen the Strait of Hormuz and the United States of America will immediately lift the naval blockade."
While the price of fuel has dropped more than 50 cents per gallon since its peak, gas is still a third more costly than it was before the conflict began. In late February, the average cost per gallon was around $2.98.
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Will Martin is a senior business editor with 10 years of experience in various roles at Business Insider. He works with a team of reporters and editors to cover everything from Big Tech, to the aviation industry, to fast food.Prior to working on the business news team, Will led Insider's sports coverage in the company's London bureau, publishing award-nominated work on alleged gang involvement in elite boxing, deeply-reported features on a civil war in Olympic sport modern pentathlon, and profiles of some of the biggest rising-stars in soccer.Before joining the sports team, Will spent a year as an associate editor on Insider's global news team. Before that, Will worked as a markets and economics reporter for Business Insider for more than three years.During his time with the news team, Will assigned and edited reporting and features on everything from the Boeing 737 Max crisis, to the persecution of Uyghur Muslims in China, to global geopolitics, and even a Barack Obama-themed service station in Ireland.He also personally reported on allegations of illegal mass human organ harvesting in China.Prior to working for Insider, Will gained a BA in International Relations from the University of Exeter, and an MA in Financial Journalism at City, University of London.You can reach him by email on: [email protected]Or via Twitter: @willmartin19
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