US Gas Prices Drop as Trump Signs Iran Peace Deal

National average gasoline prices in the United States fell below $4 per gallon for the first time since March 2026, averaging approximately $3.99 by June 18. This decline followed the signing of a framework agreement and memorandum of understanding between Donald Trump and Iran to end their war. The deal includes the reopening of the Strait of Hormuz for commercial shipping, the waiver of U.S.-backed sanctions, and a commitment from Tehran to reduce its stockpile of highly enriched uranium.

The agreement triggered a sharp drop in global oil prices, with Brent crude falling toward $79 per barrel from wartime peaks. While the U.S. Navy lifted its blockade of Iranian ports, the recovery of oil flows remains fragile. Over 500 vessels were reported waiting to exit the Persian Gulf due to safety concerns over naval mines, and shipowners remain cautious despite the ceasefire.

Diplomatic stability wavered on June 19 when Vice President JD Vance canceled planned technical talks in Switzerland. This coincided with Israeli attacks in Lebanon that killed at least 24 people, causing brief volatility and a slight rise in crude prices. Despite these setbacks, analysts suggest that if global inventories are restored and hurricane season avoids major refinery disruptions, national average prices could fall below $3 per gallon late in the year.