Gas prices drop below $4 a gallon for first time since July, after Trump signal no Iran strikes anytime soon

The US national average petrol price fell to $3.98 a gallon on Tuesday, dipping below $4 for the first time since 20 July. The decline followed a sharp fall in oil prices after President Donald Trump said a resumption of US strikes on Iran was highly unlikely while nuclear negotiations continue.

Brent crude briefly dropped below $90 a barrel after falling 13% last week, its steepest weekly decline since April 2020. An industry consultant said petrol could remain below $4 until spring, with a possible low of $3.60 to $3.65, but renewed conflict or disruption to Gulf oil supplies could reverse the fall quickly. Petrol remained about 30% above its level before US and Israeli strikes on Iran began on 28 February, while diesel was $6.16 a gallon; higher fuel costs are also contributing to inflation and transport-related expenses.