NEW YORK — U.S. average retail gasoline prices fell below $4 a gallon nationwide for the first time since mid-April, according to industry trackers.
The national average for regular unleaded gasoline stood at $3.997 on Sunday and about $3.99 on subsequent days, GasBuddy data showed. AAA reported a similar figure of $3.999 on Thursday.
The decline follows a preliminary agreement between the United States and Iran that is expected to reopen the Strait of Hormuz, a key waterway for global oil shipments that had been disrupted amid earlier conflict. Crude oil prices fell in response, with benchmarks dropping more than $4 a barrel on Monday after the announcement.
"Drivers are seeing some relief at the pump as supply concerns ease," said Patrick De Haan, head of petroleum analysis at GasBuddy, in a statement.
Gasoline inventories in the U.S. reached 215.1 million barrels in early June, government data showed. Prices remain about 90 cents higher than at the same time last year, according to GasBuddy.
The drop comes ahead of the busy summer driving season. Nearly half of U.S. states now have averages below $4 a gallon, a shift from earlier in the year when all states exceeded that level at peak prices.
The price movement reflects broader easing in oil markets after the U.S.-Iran deal. However, analysts have noted that retail prices often lag changes in crude costs due to refining, distribution and seasonal demand factors.
Energy Information Administration forecasts had pointed to generally lower gasoline prices for 2026 compared with prior years, though recent events had pushed averages higher before the latest decline.
As of Thursday, the national average had fallen for several consecutive weeks. Details on exact state-by-state variations and longer-term trends remain subject to ongoing market conditions.
GasBuddy and AAA continue to monitor pump prices daily.
