Gas prices ease after Iran ceasefire, despite Trump blackmail claims

American drivers finally got a little relief at the pump, but the break was modest. AAA said the national average for regular gasoline fell to $4.058 a gallon on April 18, down from $4.093 two days earlier, after a seven-cent weekly decline tied to the announcement of a two-week ceasefire between the United States and Iran.

The easing came after a sharp climb that pushed gasoline back above $4 a gallon nationwide for the first time since August 2022. AAA said the average first crossed that threshold on April 2 at $4.08, then rose to $4.16 on April 9, the highest level since early August 2022. Even with the latest dip, prices remained elevated enough to keep pressure on household budgets, especially for commuters and truck-dependent businesses that feel fuel changes quickly.

The price swings have been driven by fears that the conflict could disrupt traffic through the Strait of Hormuz, one of the world’s most important oil routes. The Energy Information Administration said on April 7 that a Hormuz closure and related production outages were key drivers in its latest forecast, underscoring how quickly geopolitical tensions can reach U.S. fuel markets. ABC News reported on April 13 that Donald Trump said a U.S. naval blockade in the Strait of Hormuz had begun, while the administration argued Iran was trying to “blackmail” or “extort” the world.

The stakes are high because roughly 20% of the world’s oil and gas supplies typically passes through the strait. That concentration makes even the threat of a closure enough to jolt crude prices, refining margins and retail gasoline costs in the United States. Industry observers say the effect is not limited to drivers: Reuters reported on April 14 that the blockade was also squeezing fertilizer and helium supplies, with inputs such as urea, ammonia, phosphates and sulfur potentially taking about a month to reach the United States even if the waterway reopens.

That creates the risk that the current decline in gasoline could prove temporary. AAA said the lower prices on April 16 followed the ceasefire announcement, suggesting that fuel markets are reacting to diplomacy as much as to barrels and tankers. If the truce holds and shipping lanes stay open, motorists could see further relief. If tensions flare again around the Strait of Hormuz, the recent drop may turn out to be only a brief pause in a much larger energy shock.