Economy
Jun 19, 2026
US Fuel Prices to Take Months to Normalize After US-Iran Deal
The preliminary deal to end the US-Israel war on Iran has sent oil prices tumbling, but American co…
The Impact of the US-Iran Deal on Fuel Prices
The preliminary deal to end the US-Israel war on Iran has sent oil prices tumbling to a three-month low amid hopes that the Strait of Hormuz will reopen.
But it could be months before American consumers see major relief at the petrol pump.
The Current State of Fuel Prices
On Monday, petrol prices in the US remained above $4 per gallon (3.78 litres), averaging $4.06 nationwide, according to the American Automobile Association (AAA).
This was a dip from a high in early May of $4.48 per gallon.
By comparison, prices stood at $2.98 per gallon on February 28, when the US and Israel first struck Iran, triggering a ripple effect across global energy markets.
The Data Analysis
US petrol prices: $4.06 per gallon (nationwide average)
High in early May: $4.48 per gallon
Price on February 28: $2.98 per gallon
Energy prices in the US have risen sharply in recent months, increasing 7.7 percent over the last two months alone, and are up 40 percent from a year ago.
The Impact Analysis
Experts caution that a major decline in prices is unlikely to happen as quickly as Trump suggests.
While Asian markets rely more heavily on oil shipped through the Strait of Hormuz than North American markets, tighter supply and steady demand have pushed prices higher worldwide.
"The potential deal that the US and Iran agreed to over the weekend certainly could pave the way for even lower prices… in the next two to three days by what we saw over the weekend," Patrick De Haan, head of petroleum analysis at GasBuddy, told Al Jazeera.
But De Haan expects a plateau and says that consumers may not see gas prices at pre-war levels until 2027, even if the ceasefire holds.
The Prediction
"It may take many months, if not beyond a year, for global oil inventories to recover to pre-war levels," De Haan said.
Amid strains on the supply chain, producers will also need time to ramp up output, while port bottlenecks and heightened demand during the busy summer travel season could delay any substantial relief for everyday consumers.
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