Gas prices fall below $4 for the first time since March

Iran warGas prices fall below $4 for the first time since MarchThe decline brings some relief to consumers, but experts are worried that tight oil supplies could keep prices higher for longer.Listen to this article with a free account00:0000:00Motorists pump gas in Chicago on June 9.Scott Olson / Getty ImagesShareAdd NBC News to GoogleJune 18, 2026, 8:19 AM EDTBy Steve KopackGas prices on Thursday fell below $4 per gallon for the first time since March, bringing consumers some relief, after more than three months of elevated prices as a result of the war in Iran. Subscribe to read this story ad-free Get unlimited access to ad-free articles and exclusive content.Prices have sharply dropped from $4.56, this year’s peak. As of Friday morning, the average price per gallon in the United States fell to $3.999, according AAA data tracked by NBC News.Still, even at that level, prices are more than 34% higher than before the war started on Feb. 28.The drop in retail gas prices is thanks to tumbling oil prices, which have plunged 14% over the last five days as markets became more optimistic about peace with Iran. While oil is still more than 30% higher than it was before the war started, on Thursday it fell to its lowest levels since the Iran war started. As of 8 a.m. ET, the price of U.S. crude oil was trading at about $75 per barrel, while international Brent crude oil was trading around $79 per barrel. Experts are cautious about how much further prices can fall. Backup supplies in commercial and government stockpiles have mitigated higher prices, but those are now at critically low levels. The key commercial oil hub in Cushing, Oklahoma, reached “operational stress” level on Thursday, while the U.S. government’s Strategic Petroleum Reserve fell to its lowest level since 1983 on Monday.While the U.S. and Iran have signed and published the text of a memorandum of understanding to halt the war, a fuller agreement is contingent on a 60-day negotiating period. Additionally, the...