Gas prices in the US fell on Monday following an announcement by President Donald Trump that the US and Iran had reached an agreement to end the war and reopen the Strait of Hormuz. The national average price for a gallon of gas stood at $4.0650, according to data from the American Automobile Association (AAA). California continued to experience prices above the national average at $5.7410 per gallon. The agreement aims to restore the flow of oil through the Strait, a critical route responsible for shipping over a fifth of the world's total oil.

Political reaction to the conflict

House Minority Leader Hakeem Jeffries (D-NY) criticized President Trump on Sunday, accusing him of worsening the situation with Iran by withdrawing from a key nuclear deal signed during the Barack Obama administration. In a post on X, Jeffries stated that President Obama had built a global coalition to constrain Iran's nuclear ambitions, involving countries like Japan, Great Britain, China, and Russia. "Donald Trump recklessly ripped that agreement up and took us to war," Jeffries said, describing the conflict as a "war of choice." He argued that the war had resulted in Iran emerging "stronger" while Americans were "less safe."

Market analysis and price movements

GasBuddy analyst Patrick De Haan warned that the situation could still deteriorate over a "single misstep" despite the agreement. However, he projected that gas prices in the US could fall below the $3.75/gallon mark by the Fourth of July. West Texas Intermediate (WTI) crude fell 5.61% to $80.12/bbl, while Brent crude fell 5.23% to $82.76/bbl at the time of reporting.

Economic impact and shipping costs

Prior to the agreement, the conflict had driven up costs across multiple sectors. The closure of the Strait of Hormuz had contributed to a surge in container shipping costs, with the spot rate for a 40-foot container from Asia to the US West Coast increasing by over 20% in the past week. Governor Gavin Newsom had previously criticized the Trump administration's handling of the war, noting that Americans had incurred an extra $55.6 billion in fuel costs since the conflict began.

The leaders of Canada, France, Germany, Italy, and the United Kingdom have warmly welcomed the announcement of a memorandum of understanding between the United States and Iran. The joint statement, issued on June 15, 2026, congratulates the US, the Iranian government, and mediators including Pakistan and Qatar on the diplomatic breakthrough. The nations emphasized that this development presents a moment of opportunity to restore regional stability and stabilize the global economy, urging the rapid and comprehensive implementation of the agreement.

Sanctions Relief and Nuclear Compliance

The group reiterated its stance that Iran must never acquire a nuclear weapon. In response to clear, verifiable steps by Iran regarding its nuclear program, the nations expressed their preparedness to lift relevant sanctions. They affirmed their readiness to work with the US, Iran, and the International Atomic Energy Agency (IAEA) to achieve this objective. The statement highlights the importance of concluding detailed negotiations swiftly to maintain diplomatic momentum.

Strait of Hormuz and Regional Security

Ensuring the urgent reopening of the Strait of Hormuz with unconditional and unrestricted freedom of navigation was identified as essential. The leaders committed to playing their part to achieve this, in accordance with their respective constitutional requirements. This includes potential involvement in a strictly defensive and independent mission aimed at reassuring commercial shipping and conducting mine clearance operations.

The leaders also reaffirmed their full support for the stability, sovereignty, and territorial integrity of Lebanon, underscoring the importance of a robust ceasefire in the region.