President Trump accused Iran of blackmailing the United States on Saturday, but some Americans got a break at the gas pump as prices fell. Gas now averages just over $4 a gallon nationwide, down about $0.08 from the previous week.
At the White House, President Trump struck an optimistic tone about ongoing talks with Iran before signing an executive order, saying progress was being made on several fronts. He briefly touched on tensions in the Strait of Hormuz — a crucial shipping lane through which roughly 20% of the world’s oil supply flows — after reports that Iranian gunboats fired upon two vessels.
Markets reacted to signs of diplomatic movement: the Dow posted a strong close, gaining more than 800 points on Friday, while the S&P 500 and Nasdaq hit record highs for the third straight day. Oil, which had been rising for weeks, plunged more than 11% on the same news, easing pressure on fuel costs.
Still, officials and analysts warned that the situation remains fragile. Iran’s parliamentary speaker used social media to dispute the White House’s claims about a ready resolution to hostilities, and Iran insisted it would never give up its enriched uranium. The mounting public defiance added pressure on the U.S. administration to address energy costs at home.
The International Energy Agency cautioned that if the Strait of Hormuz does not reopen, Europe could face shortages of jet fuel within six weeks — a concern that would arrive ahead of the busy summer travel season and could have wider economic impacts.
At the local level, drivers said recent price drops are welcome relief after months of high prices. Some noted that regional differences remain wide: states like California and Nevada have seen significantly higher pump prices, while averages have eased elsewhere as oil prices retreated.
