Following the signing of a preliminary memorandum of understanding between the United States and Iran on June 15, 2026, American gas prices are poised to decrease. This agreement includes the reopening of the Strait of Hormuz for commercial shipping. Since the onset of war on February 28, Iran has largely controlled the strait, which is crucial for transporting around 20% of the global oil supply. The market responded swiftly, with the S&P 500 gaining 1.9% and oil prices plummeting nearly 5% after the news broke. The former president stated he signed the deal to prevent a potential economic disaster. Energy experts believe that if the agreement remains intact, consumers in the U.S. might experience significant savings at the gas station in just a few weeks.
