Crude oil prices fell to their lowest levels in three months following the announcement of an agreement between President Donald Trump and Iran to reopen the Strait of Hormuz, a key maritime route for global oil shipments. On Monday, Brent crude declined 4.8% to settle at $83.17 per barrel, while West Texas Intermediate (WTI) crude dropped nearly 5% to close at $80.75 per barrel. Early trading saw WTI briefly dip below $80, a threshold not breached since March.

The recent decline in oil prices comes after a period of volatility and elevated costs driven by conflict-related disruptions. Prices had surged as high as $126 per barrel during the hostilities, though they remain above pre-conflict levels. The reopening of the Strait of Hormuz is expected to ease concerns about supply interruptions, thus contributing to the price decrease.

Gasoline prices in the United States currently average around $4.06 per gallon, according to the American Automobile Association. Analysts predict that pump prices will begin to decline within one to two weeks as the decrease in crude oil costs is passed along to consumers.

Matthew Reisener, a senior national security analyst at the Center for Maritime Strategy, noted that if the peace agreement holds, the reduction in crude prices should lead to some relief at the gas pump shortly. However, he cautioned that it may take several months for gasoline prices to return to levels seen before the onset of the conflict. Reisener added that despite the signing of the peace framework providing immediate benefits, consumers should expect to pay above-average rates for the foreseeable future.

The deal to reopen the strategic waterway marks a significant development in stabilizing oil markets, which had been rattled by uncertainty and clashes affecting the region’s energy supply routes. Market observers will continue to monitor the situation closely to assess the sustainability of the agreement and its long-term effects on global energy prices.