Gas prices are a hot topic today as consumers wonder how they will be affected by a ceasefire agreement between the U.S. and Iran. This agreement includes the reopening of the Strait of Hormuz, a major shipping route for oil from the Middle East. Unfortunately, prices haven’t yet fallen at the pump, according to AAA.
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Let’s dig into the average price of fuel in the U.S. today below:
- Regular was priced at $4.164 per gallon, compared to $4.140 per gallon yesterday.
- Mid-Grade was priced at $4.671 per gallon, compared to $4.652 per gallon yesterday.
- Premium was priced at $5.035 per gallon, compared to $5.017 per gallon yesterday.
- Diesel was priced at $5.669 per gallon, compared to $5.646 per gallon yesterday.
States on the West Coast continue to have the highest gas prices, while those in the Midwest have the lowest prices for gas.
What Will Happen to Gas Prices Following the Ceasefire Agreement?
Gas prices will go down as a result of the ceasefire agreement between the U.S. and Iran. However, it could take months before gas prices settle back to what they were before the conflict started. This means consumers can expect to pay elevated gas prices until late 2026, despite the price of Brent crude oil already falling alongside the ceasefire announcement.
How Have Oil Stocks Been Affected By the Ceasefire Agreement?
Many oil stocks were down on Wednesday following news of the ceasefire agreement between the U.S. and Iran. Even so, analysts are still incredibly bullish on the sector.
Turning to the TipRanks stock comparison tool, traders will see that Chevron (CVX) and Schlumberger (SLB) are analysts’ favorites in this sector, with consensus Strong Buy ratings. Exxon Mobil (XOM), ConocoPhillips (COP), and EOG Resources (EOG) also have bullish coverage with consensus Moderate Buy ratings.
