The average price of regular grade gasoline in the United States fell to $3.99 per gallon on Thursday, marking the first time prices have dropped below $4 since March 30. This decline comes after three consecutive weeks of falling costs following a period of elevated prices caused by the war with Iran.
The price drop followed an agreement signed by President Donald Trump and Iran to end the war and reopen the Strait of Hormuz. Under the terms of the deal, Tehran has agreed to dilute its stockpile of highly enriched uranium, and the United States will waive sanctions on the country.
While drivers are experiencing some relief at the pump, costs remain significantly higher than before the conflict began. Gas prices are currently 30% higher than they were prior to the U.S. and Israel's attack on Iran on Feb. 28. Despite the reassurance provided by the agreement and the reopening of the Strait, analysts indicate that significant obstacles still remain.