Oil prices in the US have fallen sharply, with the West Texas Intermediate crude price dropping 7.8% to $95.96 a barrel on Monday. This decline is attributed to the US and Iran signaling their openness to peace talks.
What happened
The US benchmark crude price fell to its lowest level in recent times, with wholesale gasoline prices also decreasing by 18 to 24 cents a gallon. The national average gasoline price could potentially fall to around $4 a gallon if these declines continue.
Secretary of State Marco Rubio stated that President Donald Trump prefers a diplomatic resolution to the conflict with Iran. The Iranian Foreign Minister, Abbas Araghchi, also expressed the possibility of a deal with the US if the Trump administration demonstrates goodwill and genuinely seeks a peaceful solution.
The decline in oil prices may bring relief to drivers, as regular gasoline currently costs an average of $4.17 a gallon nationwide. However, the impact of the conflict on US gasoline and heating oil prices is still uncertain, with the Energy Information Administration not having an estimate that isolates the conflict's effect.
