Average diesel price in the US falls below $5 after easing tensions in the Middle East

For the first time since mid-March, the average price of diesel in the United States has fallen below the $5-a-gallon threshold, following a steady downward trend in recent weeks.

AAA data show the average has dropped to $4.98 per gallon, moving significantly away from the record level of $5.67 recorded on May 6.

This decline is mainly linked to expectations of improved global oil supply, following developments that led to the reopening of the Strait of Hormuz and raised hopes for negotiations between the United States and Iran.

Although most Americans do not use diesel vehicles, changes in its price directly affect the broader economy, as freight transport companies usually increase shipping costs when fuel becomes more expensive.

Small changes have also been observed in gasoline. The average price of regular gasoline rose by about 0.2 cents, reaching $3.93 per gallon, bringing to an end a streak of 34 consecutive days of falling prices.

However, experts stress that the market remains sensitive to developments in the Middle East. According to them, it is still unclear how quickly supplies passing through the Strait of Hormuz will reach levels sufficient to meet global summer demand.