American drivers are getting some relief at the pump, with gasoline prices falling below $4 a gallon for the first time since July.
The national average for regular gasoline stood at $3.98 a gallon on Tuesday, down from $4.15 a week ago, according to the American Automobile Association. Prices remain significantly higher than last year, however, when the average was $3.07 a gallon.
The decline came as crude-oil prices retreated on growing expectations of a diplomatic resolution to the conflict in the Middle East after the midterm elections. Brent crude, the global oil benchmark, fell below $90 a barrel, while the U.S. oil gauge West Texas Intermediate traded around $85 a barrel.
U.S. President Trump acknowledged that the Iran war contributed to Republicans' widespread election losses and played down the prospect of renewed military action against Tehran. Diplomatic efforts are also extending beyond the Middle East. The U.S. is hosting Russia-Ukraine talks in Abu Dhabi on Tuesday, marking the first trilateral negotiations since February.
U.S. pump prices surged above $4 a gallon this year as disruptions to oil flows through the Strait of Hormuz waterway and Ukrainian attacks against Russian refineries significantly tightened global supplies. Crude oil--the main input for gasoline and the single largest component of its retail price--climbed above $120 a barrel in the spring. It traded around $72 a barrel before the Iran war started in late February.
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