Talk of soaring gasoline prices and nationwide averages of $5 per gallon is now a thing of the past, as prices are heading down, says Stephen Schork, publisher of the industry newsletter the Schork Report.
Nationwide, gasoline prices are averaging around $3.82 a gallon, according to the AAA Daily Fuel Gauge Report, lower than a peak of around $3.95 earlier this year as tensions with Iran ease.
The West accuses Iran of developing a nuclear weapons program, a charge Tehran denies, and has slapped sanctions on the country that have begun to curtail Iranian crude exports.
Iran has threatened to cut off the Strait of Hormuz, a narrow waterway connecting oil-rich Persian Gulf countries with the rest of the world, sending Brent oil futures skyrocketing in the past.
Brent crude is a European blend that largely dictates the behavior of gasoline worldwide, yet Iran has agreed to talks with the U.S., Europe and other countries, which has sent Brent futures falling.
Expect U.S. gasoline prices to continue to ease, Schork predicts.
"We're certainly going to see prices move lower at this point," Schork tells CNNMoney. "If we don't have any supply issues or refinery outages, we've seen the highs for the summer."
The Obama administration has not ruled out tapping the Strategic Petroleum Reserve — an emergency crude stockpile — despite declining fuel prices, which officials see as still too high.
"We are very focused on energy prices ... they are too high," says Deputy Energy Secretary Daniel Poneman, according to Reuters.
The White House is keeping "every tool available to us in a state that can be used. We are continually consulting with our international partners on this."
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