Gasoline prices in the United States fell below the psychological barrier of $4 per gallon, marking the first time since April.

Due to optimistic market expectations that the preliminary agreement between the US and Iran will lead to the reopening of the Strait of Hormuz, the average retail price of gasoline in the US has fallen below $4 per gallon for the first time since mid-April. On Monday, US President Trump announced that the US and Iran had signed a memorandum of understanding to end the conflict, causing oil prices to drop by over $4 per barrel. However, the effectiveness of the agreement remains to be seen. The decline in fuel prices may provide some breathing room for the Trump administration, as Trump and Republican lawmakers are striving to maintain their slim majority in both houses of Congress in the midterm elections in November. The $4 per gallon threshold is typically seen as a psychological barrier, and once crossed, some consumers may start to change their behavior, such as reducing fuel consumption. According to GasBuddy data, on Sunday the national average retail price of gasoline in the US dropped to $3.997 per gallon, marking the first time it has fallen below $4 since mid-April, but still 90.8 cents higher than the same period last year.