The average price of a gallon of gasoline in the United States dropped below $4 for the first time in over two months, according to N12 journalist Assaf Rosenzweig. The decline follows the signing of the US-Iran memorandum of understanding.
The average US gasoline price has dipped below the $4-per-gallon mark, the first time in over two months, as the economic effects of the US-Iran memorandum of understanding continue to ripple through energy markets. According to a report by N12's Assaf Rosenzweig, the price decline tracks a broader drop in crude oil benchmarks — Brent crude fell to $83 and West Texas Intermediate dropped 5% — following market optimism that resumed Iranian oil exports will boost global supply.
As The Zioneer reported on Thursday (15:32 Jerusalem), the initial sub-$4 milestone came hours after the MOU was formally signed. The same thread has seen the US crude benchmark fall 5% on Tuesday and Brent crude drop to $83 on Monday, amid speculation that eased sanctions on Iranian crude would flood the market. The trend reverses a period during which Iran's export restrictions had contributed to higher prices. Former National Security Advisor John Bolton criticized the deal this week as driven by the administration's focus on lowering gasoline prices.
The price remains volatile: the reported drop reflects the national average, and further movement will depend on how quickly Iranian crude actually reaches buyers and on other supply factors.
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