(The Center Square) – Minnesota gas prices continued to fall Monday following reports of a coming U.S.-Iran peace deal that is already easing tensions in the Strait of Hormuz.
The United States and Iran are expected to sign a peace agreement this week aimed at ending conflict in the region and reopening the Strait of Hormuz, a critical trade rote for global oil transport.
Minnesota drivers had already seen prices ease in recent days, continuing a downward trend from recent highs that first began with the outbreak of the conflict in Iran in February.
On Monday, the state’s average price for regular unleaded stood at $3.86 per gallon, according to AAA, down from $3.87 the previous day and $3.97 a week ago. A month ago, the average was $4.41 per gallon.
Despite recent declines, prices remain significantly higher than a year ago, when Minnesota drivers were paying about $2.94 per gallon on average.
Mid-grade fuel currently averages $4.30 per gallon, while premium stands at $4.80. Diesel averages $4.96 per gallon, down from $5.06 a week ago and $5.39 a month ago.
President Donald Trump said on social media that the prospective peace deal is already allowing for resumed oil trading.
“Ships are starting to move, many loaded up with Oil, out of the Strait of Hormuz,” Trump wrote on Monday.
Specific details of the agreement have not been released publicly. The deal is expected to be signed Friday in Switzerland.
GasBuddy reported following the peace deal that U.S. prices have dropped below $4 per gallon for the first time since April.
“The decline came as oil prices moved sharply lower in reaction to news of a potential deal between the United States and Iran, though it remains to be seen whether the agreement will hold,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
Nationally, California continues to have the highest average gas prices at $5.74 per gallon, while Indiana has the lowest at $3.34.
Minnesota prices remain in line with many neighboring states. Wisconsin’s average stands at $3.86 per gallon, while North Dakota’s average is $3.84.
Within Minnesota, Cook County posted the highest average at $4.23 per gallon, while Steele County recorded the lowest at $3.63, a 60-cent spread across the state.