The retail price of gasoline in the United States has fallen below $4 per gallon for the first time since mid-April.

Driven by optimistic market sentiment, the average retail price of gasoline in the United States has fallen below $4 per gallon for the first time since mid-April. It is widely believed in the market that the US and Iran are likely to reach a preliminary agreement, at which point the key oil transportation route of the Strait of Hormuz will reopen. After US President Trump announced the signing of a memorandum of understanding between the US and Iran to end the nearly four-month conflict, international crude oil prices plummeted on Monday, with a drop of over $4 per barrel. However, whether this agreement can be implemented and remain effective remains to be seen. The fall in fuel prices may alleviate pressure on the Trump administration. Earlier, the Trump administration promised to lower energy costs for the public; Republican lawmakers are gearing up for the midterm elections in November, seeking to maintain their slim majority in both houses of Congress, with high fuel costs having been a target of criticism from voters. The market generally sees $4 per gallon as a psychological threshold; once oil prices fall below this level, many consumers may adjust their travel consumption habits and reduce fuel consumption.