WASHINGTON — President Donald Trump said U.S. gasoline prices could drop to roughly $2.50 per gallon if the Strait of Hormuz is fully reopened, as negotiations with Iran stretched through Tuesday with both sides describing the talks as near resolution.
Trump said he expected a deal could be announced as early as Wednesday. Iran said it has reached the final stage of discussions on reopening the strait, aligning with the U.S. assessment that an agreement is close.
Trump had said Thursday that he expected gasoline prices to keep falling as the conflict with Iran wound down, attributing the stabilization of energy markets to recent U.S. military actions against Tehran.
The Strait of Hormuz connects the Persian Gulf to the Gulf of Oman and carries a significant share of the world's oil supply. Disruptions to the waterway have rippled through global shipping and energy markets.
A drop to $2.50 per gallon would cut household fuel costs and reduce energy input prices across manufacturing and logistics.
