Gasoline Drops Below $4 as Oil Futures Plunge

Gasoline prices in the United States have fallen below the four dollar mark per gallon for the first time since July. According to data from AAA, the national average price for regular gas dropped to $3.97 on Tuesday. This marks a decrease from $4.14 on election day.

The decline follows a sharp drop in global oil markets. Crude oil futures fell by 13% last week. This represented the largest weekly percentage drop for Brent crude since April 2020. On Monday, oil prices dropped another 5% to their lowest level since August 31. By Tuesday, prices briefly dipped below $90 per barrel.

Market analysts attribute the shift to recent political developments. President Donald Trump told NBC News he did not plan to attack Iran. This statement coincided with strong results for Democratic candidates in the Tuesday midterm elections. Markets moved on the expectation that Democratic control of both the House and Senate would limit certain economic policies.

Strategists at ING noted in a report that Democratic control of Congress would likely lead to increased scrutiny of the war. They stated that funding the conflict might become more difficult. They added that the election result implies greater resistance from the Republican Party. Traders also reacted to Vice President Vance acknowledging the unpopularity of the war.

Despite the recent drop, fuel costs remain high compared to earlier in the year. Gasoline prices are still more than 30% higher than when the war with Iran began on February 28. They are approximately 40% higher than levels from the start of 2026. Diesel prices have also decreased, falling from $6.28 per gallon on election day to $6.15.

Economists indicate that diesel costs impact inflation in supermarkets and department stores. Diesel is essential for transporting goods via trains, ships, and trucks. The price increase for diesel has been larger than for gasoline. Gasoline prices are still up more than 70% from the beginning of the year, driven by the war with Iran and attacks on energy infrastructure in the Ukraine and Russia conflict.

President Trump reiterated his stance on Monday at the White House. He stated that the military war with Iran is practically over. He said the administration is maintaining the status quo and sees a good possibility that the war could end. He added that military action does not seem very necessary but that they are ready to act if changes occur. No decision has been made regarding a new military campaign, according to sources.