The national average gas price dipped below $4 per gallon on Thursday for the first time since March, following President Donald Trump’s signing of a tentative peace deal with the Islamic Republic of Iran.
Average gas prices stand at $3.99 in the United States, down from $4.03 the day before, according to AAA. The decline coincides with a 15% drop in the price of U.S. crude this month.
Drivers across the South and Midwest are enjoying some of the nation’s cheapest gasoline. Indiana boasts the nation’s lowest average gas price of $3.39 per gallon, while Oklahoma, Texas, Tennessee, and other red-leaning states remain in the same range. On the East Coast, Maryland, Virginia, Delaware, and Rhode Island have also dropped below $4 per gallon.
Credit: The White House via Storyful
Patrick De Haan, head of petroleum analysis at GasBuddy, said gas prices could fall below $3 a gallon later this year.
It’s a welcome relief for cash-strapped consumers and perhaps a turnaround for the White House, which has been racing to lower prices ahead of the crucial November elections.
“These fools, who think I haven’t been tough enough on Iran, when the Stock Market Just Hit A RECORD HIGH, and Oil prices are ‘tumbling’ down, are either jealous, bad people, or stupid,” President Trump said in a Thursday morning Truth Social post.
On Wednesday night, Trump formally signed the U.S.-Iran agreement aimed at ending the Middle East conflict during a dinner with French President Emmanuel Macron at the Palace of Versailles following the G7 summit. Iranian President Masoud Pezeshkian reportedly signed on behalf of the Iranian regime, The Daily Wire previously reported.
The U.S.-Iran memorandum of understanding guarantees toll-free passage through the Strait of Hormuz for 60 days, but it also calls on Iran, Oman, and other Gulf states to negotiate the waterway’s long-term administration afterward, raising questions about whether future transit fees could be imposed in a way that benefits Tehran.
Gas prices have remained elevated since the war began, peaking at $4.56 per gallon. By comparison, the national average stood at $3.18 on the same date in 2025, according to AAA.
In May, pain at the pump passed an ugly mark, with all 50 states reporting average gas prices at $4 or higher going into Memorial Day weekend.
Opening the Strait and lowering oil prices appeared to be a top concern for the president.
“If I did the opposite, if I went out and continued to bomb them … just bomb the hell out of them, I’d get bad press on that, there’s nothing I can do,” Trump said. “Also, we run out of reserves in about four weeks, you know, there are reserves all over the world, and we would really run out, and there’ll be a time when you wouldn’t be able to get it, and you want to see bedlam?”
“I didn’t want to see economic catastrophe. If you kept this going, that could have happened,” Trump added.
Trump on the Iran War MOU: “I didn’t want to see economic catastrophe. If you kept this going, that could have happened.”
It’s honestly a surreal minute to watch:pic.twitter.com/K7ZRPYklV5
— Rory Johnston (@Rory_Johnston) June 17, 2026
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