For the first time since March 2026, the average price of gasoline in the United States dropped below the $4 mark. The catalyst: a memorandum of understanding between the US and Iran that promises to reopen one of the most important chokepoints for global energy supply.
The US national average hit $3.999 per gallon on June 18, down from levels that had been stubbornly parked above $4 for months. Brent crude fell over 4% toward $83 per barrel on the news, a dramatic swing for a commodity that had touched $120 per barrel earlier in 2026 when the conflict was at its most intense.
What the deal actually says
President Donald Trump and Iranian President Masoud Pezeshkian signed the preliminary MoU on June 17-18, 2026. The core of the agreement centers on reopening the Strait of Hormuz, the narrow waterway between Iran and Oman that handles roughly 20% of the world’s oil shipments.
The initial terms call for toll-free passage through the strait for 60 days while Iran clears mines from the waterway. That same 60-day window doubles as a negotiation period covering two of the thorniest issues in US-Iran relations: Iran’s nuclear program and sanctions relief on Iranian oil exports.
