Gas prices sink for sixth week in a row, down 14% from May peak amid US-Iran negotiations
Gasoline prices in the US have dropped for the sixth consecutive week, declining by 14% from their peak in May, following President Trump’s signing of a tentative peace deal with Iran. Negotiations over a nuclear agreement are ongoing, but prices have already seen a significant decrease.
The national average gasoline price is now at $3.93 per gallon, down 11 cents from last week and a sharp decline from the peak of $4.56 in May, as reported by AAA.
Most states, including New York and New Jersey, have experienced a drop in gasoline prices. New York saw a decrease of 12 cents to $4.22 per gallon, while New Jersey’s prices fell to $3.96 per gallon.
Oil benchmarks have also dropped below $80, a significant decrease from the peak of $126 during the war.
The decline in gasoline prices could have political and economic implications, potentially impacting midterm elections and inflation rates, which recently surpassed 4% due to rising energy costs.
Experts predict that it may take several months for gasoline prices to stabilize below $3 per gallon, and any resumption of hostilities could lead to a reversal in prices.
Following the signing of a memorandum of understanding with Iran, crude oil tankers have been able to transit the Strait of Hormuz, although recent reports indicate that Iran has once again blockaded the waterway.
As part of the agreement, Washington has waived oil sanctions on Tehran for two months, allowing Iran to generate significant revenue.
