As President Donald Trump announces a two-week ceasefire with Iran pending opening the Strait of Hormuz, you might be wondering if the agreement will help ease prices at the pump.
While oil prices reportedly plunged to under $100 a barrel on Wednesday, April 8, the national average for a gallon of regular gas is $4.164, indicating that it could take time for prices to drop, even with the ceasefire in place. It is the first time that fuel has exceeded $4 a gallon since August 2022, reported AAA. Crude oil prices had also been surging, surpassing $100 barrel.
As part of the ceasefire, Iran has agreed to open up the Strait of Hormuz, Trump said in a Truth Social Post on April 7. Iran has blocked oil shipments through the Strait of Hormuz, which sees some 20% of the world’s gas and oil exports.
Here’s what to know about oil prices and gas prices could go down.
Oil prices per barrel today
Oil fell to about $95 per barrel during the early morning hours of April 8, though U.S. crude oil is still up more than 65% since the year began, even when factoring in Wednesday’s sharp drop, according to NBC News.
West Texas crude price
The West Texas Intermediate also fell on April 8, to $94.39 per barrel as of 6:30 a.m. MT/ 7:30 a.m. CT.
Did gas prices go down?
While the price of a barrel of oil took a plunge, AAA was still reporting the national average of a gallon of regular fuel at over $4.
When will gas prices go back down?
Trump has repeatedly said that gas prices will go down once the war with Iran concludes.
In an address to the nation on April 1, the president said the war’s ending will result in a reopening of the Strait of Hormuz, a key waterway in the global oil market, which has been met with skepticism by some experts, according to USA TODAY.
“They’re going to want to be able to sell oil because that’s all they have to try and rebuild,” Trump said on April 1. “It will resume the flowing and the gas prices will rapidly come back down. Stock prices will rapidly go back up.”
USA TODAY contributed to this story.
Natassia Paloma may be reached at npaloma@gannett.com, @NatassiaPaloma on x; natassia_paloma on Instagram, and Natassia Paloma Thompson on Facebook.
This article originally appeared on El Paso Times: Oil prices per barrel today: Are oil prices going down?
Reporting by Natassia Paloma, El Paso Times / El Paso Times
USA TODAY Network via Reuters Connect
