Gas Prices Drop Below $4 After Iran Deal

The agreement had an immediate impact on oil supply. Eleven tankers left Iran's Chabahar port within days, carrying a combined 20 million barrels of crude oil. That sudden increase in supply pushed international oil prices down sharply. However, analysts noted that weakening Chinese demand also played a major role. China's crude oil imports dropped to 6.7 million barrels per day — nearly 40% below its 2025 average — reducing pressure on global markets significantly. Additional supply from Brazil, Guyana, and the United States further eased the situation.

Despite these positive developments, uncertainty remains. Peace talks scheduled for Geneva were abruptly postponed, and Iran's Islamic Revolutionary Guard Corps (IRGC) briefly claimed the Strait of Hormuz had been closed again, though Iran's Foreign Ministry quickly denied this. Tanker traffic through the strait has only partially recovered. Petroleum analyst Patrick De Haan predicted that the US national average could fall below $3 per gallon by late 2026 or early 2027, provided the diplomatic agreement holds and Iran is allowed to sell oil freely on global markets.