US Gas Prices Drop Before Iran Re-closes Strait of Hormuz

U.S. gasoline prices declined in mid-April 2026, with national averages dipping below $4 per gallon. This downward trend followed a two-week ceasefire between the United States and Iran and the reopening of the Strait of Hormuz, which pushed crude oil prices below $100 per barrel. To further stabilize costs, Donald Trump ordered the release of 172 million barrels from the Strategic Petroleum Reserve and the Environmental Protection Agency issued waivers for E15 ethanol blends.

State-level relief was widespread, with significant price drops reported in Texas, South Carolina, Tennessee, and California. Internationally, Canada temporarily eliminated its federal Fuel Excise Tax to lower costs, and Pakistan signaled upcoming petrol price reductions based on these global trends.

However, the relief proved short-lived. By April 20, Iran re-closed the Strait of Hormuz, triggering a surge in oil prices. President Trump signaled further escalation if Tehran failed to reach an agreement. Petroleum analysts warned that these renewed disruptions and market volatility would likely drive gasoline and diesel prices back up across the United States within days.