Gas Prices Fall under $4 for First Time in 5 Months after Hormuz Reopening

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The average price for a gallon of gas has dropped below $4 for the first time in five months after the US and Iran agreed to reopen the Strait of Hormuz.

According to the American Automobile Association, the average price dropped to $3.999 a gallon on Thursday, 3 cents lower than the day before.

The national average peaked at $4.56 a gallon towards the end of May, and then began a steady decline as hopes of an end to the conflict grew.

The US and Iran have now agreed to reopen the Strait of Hormuz under a memorandum of understanding that aims to bring the war, which began on 28 February this year, to an end.

Around a fifth of the world’s oil and natural-gas exports pass through the Strait each year. The closure of the Strait sent prices skyrocketing.

This is the first time since 30 March that the US national average gas price has fallen below $4.

Indiana now has the lowest average price in the nation at $3.40 a gallon. Twenty-eight states currently have average prices lower than $4.

It’s reckoned Americans have spent $46 billion more on gasoline since the beginning of the war.

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