Gasoline Prices Slow to Drop After Persian Gulf Tensions Ease

Experts say it could take months for fuel prices to return to pre-war levels despite plunging oil prices.

Apr. 17, 2026 at 10:50pm

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A geometric abstract illustration using simple shapes and bold primary colors to conceptually represent the dynamics of the global oil market and its impact on gasoline prices.The complex interplay of global oil supply, shipping routes, and geopolitical tensions that impact fuel prices for consumers.NYC Today

After the U.S. and Iran announced the Strait of Hormuz was fully open to commercial vessels following nearly seven weeks of war, oil prices plunged 10% and the stock market rallied. However, gasoline prices are not expected to drop as quickly as crude oil, with experts citing factors like tanker travel time, lingering security concerns, and damage to Middle East energy infrastructure as reasons for the slower price decline at the pump.

Why it matters

The slow decline in gasoline prices despite the easing of tensions in the Persian Gulf highlights the complex dynamics of the global oil and fuel markets. Even as crude oil prices fall sharply, the impact on consumer prices at the gas station can be delayed due to logistical factors and market uncertainty.

The details

While oil prices fell by $10 to $12 per barrel after the ceasefire announcement, experts say it could take weeks or months for that to fully translate into lower gasoline prices for consumers. Factors like the time it takes for tankers to reach refineries, lingering security concerns, traffic jams in the Strait of Hormuz, and damage to energy infrastructure in the Middle East are all contributing to the slower price decline at the pump.

  • On April 17, 2026, U.S. President Donald Trump and Iran's foreign minister announced the Strait of Hormuz was fully open to commercial vessels.
  • Oil prices plunged 10% and the stock market rallied on April 17, 2026 following the announcement.
  • A gallon of regular gasoline cost $4.08 on average in the U.S. on April 17, 2026, down a few cents from the previous week.

The players

Donald Trump

The President of the United States at the time of the announcement.

Iran's foreign minister

The foreign minister of Iran who announced the Strait of Hormuz was fully open.

Mark Barteau

A professor in the department of chemical engineering at Texas A&M University who commented on the dynamics of gasoline prices.

Michael Lynch

A distinguished fellow at the Energy Policy Research Foundation who provided analysis on the potential for gasoline price declines.

Patrick De Haan

The head of petroleum analysis at GasBuddy who estimated the national average gasoline price could reach $3.45 to $3.65 by Memorial Day.

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What they’re saying

“The historical observation is that gasoline prices rise quickly but fall slowly, regardless of the particular causes of the increase.”

— Mark Barteau, Professor, Texas A&M University

“That doesn't happen overnight, but within a week or two, we could be down 50 cents a gallon easily, if this holds.”

— Michael Lynch, Distinguished Fellow, Energy Policy Research Foundation

“Every state will start seeing gas price decreases accelerate at a pace of probably 1 to 3 cents a gallon for every day or two, and that could continue for at least a couple of weeks.”

— Patrick De Haan, Head of Petroleum Analysis, GasBuddy

What’s next

If an agreement to end the war is reached, it could take at least four months for shipping through the Strait of Hormuz to go back to normal as mines are removed, tanker traffic is cleared, and shipping rates return to pre-war levels.

The takeaway

The slow decline in gasoline prices despite the easing of tensions in the Persian Gulf underscores the complex and interconnected nature of global energy markets. Even as crude oil prices fall sharply, the impact on consumer fuel prices can be delayed due to logistical factors and lingering uncertainty, highlighting the challenges in quickly restoring normal energy supply chains.