Gas prices in the U.S. have been on a decline as the U.S.-Iran Memorandum of Understanding (MoU) led to the reopening of the Strait of Hormuz, sending oil prices down to inch closer to pre-war levels.

Gas Prices Drop, But Strait Of Hormuz Remains Key

GasBuddy analyst Patrick De Haan, in a post on X on Monday, said that the national average price of a gallon of gas was falling and reaching "a 6-week decline."

"Diesel fell 19.2c/gal over the last week to $4.99/gal," he said in the post. However, De Haan warned that uncertainty over the Strait could pose challenges for the supply chain and lead to a slowdown in the decline.

"With new concerns over the Strait, we may see the decline slow, but it may not reverse yet," he said. Data from Vesselfinder at press time showcased multiple ships passing through the Strait. The UK Maritime Trade Operations Center (UKMTO) has also not reported incidents or suspicious activity in the area.

Iran Claims Administration Of Strait Of Hormuz

Meanwhile, Iran's Parliament Speaker Mohammad Bagher Ghalibaf said that Iran will be administering the Strait of Hormuz following talks in Switzerland, saying that the situation can never go back to the pre-war status quo.

On the other hand, Esmaeil Baqaei, a spokesperson for the Iranian Foreign Ministry, denied reaching a new agreement with the U.S. over letting inspectors from the International Atomic Energy Agency (IAEA) into Iran, contrasting Vice President JD Vance's comments.

Oil, Gas Prices

Oil prices fell on Tuesday, with the West Texas Intermediate (WTI) crude oil trading for $73.59/bbl at press time, while the Brent crude oil also fell to $77.53/bbl at the time of writing this article. The ETF United States Oil Fund (USO) was trading at $111.65 during pre-market trading on Tuesday.

Gas prices in the U.S. remained below $4/gallon, with the national average at $3.9260/gallon on Tuesday, according to data from the American Automobile Association (AAA). Prices remained above $5/gallon in states towards the Pacific, like California and Washington.