President Trump accused Iran of “blackmail” on Saturday even as many Americans saw a small break at the pump: the national average for regular gasoline fell to just over $4 per gallon, about $0.08 lower than the prior week.
At the White House, Mr. Trump struck an optimistic tone about talks with Iran before signing an executive order, saying progress was being made on multiple fronts. He also addressed rising tensions in the Strait of Hormuz, the key waterway that carries roughly 20% of the world’s oil, after reports that Iranian gunboats had fired on two vessels.
Financial markets responded to signs of possible diplomatic movement. The Dow surged, gaining more than 800 points on Friday, while the S&P 500 and Nasdaq closed at record highs for the third consecutive day. Oil prices, which had climbed for weeks amid supply concerns, plunged more than 11% on the same news, easing immediate pressure on retail fuel costs.
Despite the market rally, officials and analysts cautioned that the situation remains fragile. Iran’s parliamentary speaker used social media to dispute White House assertions of a near-term resolution, and Iranian officials reiterated that the country would not abandon its enriched uranium program. That public pushback raised pressure on the U.S. administration to tackle rising energy costs domestically.
The International Energy Agency warned of broader risks: if the Strait of Hormuz stays closed, Europe could face jet-fuel shortages within about six weeks — a problem that would hit ahead of the busy summer travel season and could ripple through the global economy.
Locally, drivers welcomed the recent drop in pump prices after months of high fuel costs. Still, regional disparities persist: states such as California and Nevada continue to report substantially higher prices, while many other areas have seen averages fall in step with the retreat in crude oil prices.