US Gas Prices Dip Below $4 Amid Easing Iran Tensions

WHO:

CNN - Matt Smith, lead oil analyst at Kpler

CNN - Tom Kloza, independent oil analyst and advisor to Gulf Oil

CNN - Dan Pickering, founder and chief investment officer at Pickering Energy Partners

WHAT:

CNN - The US national average gas price dropped to $3.999 per gallon.

CNN - The average price at the pump has fallen every day since reaching a high of $4.56 on May 21.

CNN - Indiana has the cheapest average gas price at $3.40, with 28 states having prices below $4.

CNN - GasBuddy reported the price at about $3.98 early Thursday.

Bloomberg Markets - US gasoline prices dipped below $4 a gallon for the first time since March.

WHERE:

CNN - The Strait of Hormuz, a critical waterway for oil supply.

WHEN:

CNN - The gas price dropped below $4 for the first time since March 30.

CNN - The high of $4.56 was reached on May 21.

CNN - It will likely take three or four months for tankers to fully resume sailing through the Strait of Hormuz.

WHY:

CNN - The drop in gas prices is attributed to easing tensions with Iran and the reopening of the Strait of Hormuz.

CNN - The closure of the strait in late February disrupted about 20% of the world’s oil supply, causing prices to soar.

HOW:

CNN - Experts indicate that it will take time for oil flow to return to normal levels and for damaged oil facilities to be repaired.

CNN - Gas station owners are expected to lower prices at a slower pace than they raised them due to previous profit cuts.

(UPDATED June 18, 2026 10:23 UTC)

Gas prices in the U.S. have dropped to an average of $3.999 per gallon, marking the first time prices have fallen below $4 since March, following a peak of $4.56 on May 21. Indiana currently boasts the cheapest average gas price at $3.40, while 28 states are seeing prices below $4, thanks to easing tensions with Iran and the reopening of the critical Strait of Hormuz, which had previously disrupted about 20% of the world's oil supply. Experts suggest that it will take three to four months for tankers to fully resume sailing through the strait and for oil flow to return to normal levels, with gas station owners likely lowering prices at a slower pace than they initially raised them.