WANA (Jun 18) – In a major relief for American consumers, the national average price for regular gasoline has dropped below $4 per gallon for the first time since March 30.

 

The sharp decline comes amid tumbling global crude prices and rapid developments in energy markets following the signing of a historic peace memorandum between the United States and Iran.

 

According to data released on Thursday by the American Automobile Association (AAA), the national average for a gallon of regular unleaded fuel fell to $3.999, marking a roughly three-cent decrease from the previous day.

 

Indiana recorded the lowest average in the country, with pump prices dipping to $3.40 per gallon. The Hoosier State is one of 28 states where gasoline averages have now successfully retreated below the $4 threshold.

 

Meanwhile, real-time market tracking firm GasBuddy reported an even lower nationwide average of approximately $3.98 per gallon in the early hours of Thursday local time.

 

The downward trend at the pump coincides with a broader retreat in global oil markets, which have experienced a significant sell-off in recent days.

 

Market sentiment has been heavily influenced by the Islamabad Memorandum of Understanding, which was electronically signed into effect early Thursday, June 18, 2026, by Iranian President Masoud Pezeshkian and U.S. President Donald Trump.

 

The diplomatic breakthrough, brokered under the mediation of Pakistan and Qatar, establishes a strict framework for halting military operations and executing mutual commitments. Crucially for global markets, the agreement initiates a 60-day window designed for both Washington and Tehran to negotiate a permanent, comprehensive peace treaty.