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In the upcoming weeks, American drivers are anticipated to experience considerable relief at fuel stations as the Strait of Hormuz opens up in accordance with the US-Iran agreement established on June 17. This development is contributing to a decline in global crude oil prices that had surged due to the conflict. Officials from the Trump administration are highlighting the advantages of this agreement for US consumers, predicting a decrease in national average gas prices by 40 to 50 cents per gallon within the next four to six weeks as the global oil supply stabilizes. The Strait of Hormuz is responsible for approximately 20% of the world's oil and natural gas trade. Its near-total shutdown since March has significantly impacted global supply, leading to US gas prices reaching nearly historic highs, with an average peak of $4.89 per gallon recorded in May 2026. All states in the country are poised to gain from this situation.
Transcript
00:00There is finally some good news for American wallets.
00:02Gas prices across all 50 states are expected to fall significantly in coming weeks,
00:08as the Strait of Hormuz begins to reopen under the U.S.-Iran ceasefire deal signed last week in Geneva.
00:14Global crude prices have already begun retreating from their war-era highs,
00:19the highest sustained prices since Russia's 2022 invasion of Ukraine.
00:24Trump administration officials are projecting the national average could drop 40 to 50 cents per gallon over the next month,
00:31and a half as the one-fifth of global oil trade that flows through the strait returns to something approaching
00:37normal volumes.
00:38At its peak last month, the national average hit $4.89 per gallon, a level not seen since 2022.
00:47Analysts caution that the decline will take several weeks to flow through the supply chain,
00:52and that the nuclear talks still underway in Switzerland represent the biggest remaining risk to energy markets.
00:58But for now, the outlook at the pump is improving.
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