US and South Korean Fuel Prices Drop After US-Iran Ceasefire

Fuel prices in the United States and South Korea declined significantly in late June 2026, driven by a sudden cessation of military hostilities between the U.S. and Iran. In the U.S., the national average for gasoline fell to between $3.78 and $3.86 per gallon, marking the lowest levels since mid-March. Diesel prices similarly dropped to $4.876 per gallon. These trends were mirrored in South Korea, where gasoline prices fell below the 2,000-won per liter threshold for the first time in two months after the government lowered price ceilings to reflect a 34.3 percent drop in Dubai Crude.

The price relief follows a period of extreme volatility triggered by an attack on Iran authorized by Donald Trump on February 28, which disrupted shipping in the Strait of Hormuz and drove inflation to 4.2 percent in May. After a week of exchanged strikes, the U.S. and Iran reached a framework agreement to halt hostilities on Sunday, June 28, preventing a major spike in oil prices.

Despite the decline, President Trump criticized oil companies for not passing enough savings to consumers, stating prices should be around $2.25 per gallon. He subsequently launched an investigation into price gouging. While analysts expect prices to continue drifting lower ahead of the July 4 holiday, they warn that the outlook remains unpredictable due to the fragile nature of the U.S.-Iran diplomatic accord.