Gas prices remain high — but they fell 3.3 cents on Thursday, the biggest single-day drop since the 2008 financial crisis.
The national average for regular gas dropped to $4.43 a gallon, the lowest level since May 1, according to AAA.
The drop reflects the recent plunge in oil and gasoline futures in recent days as traders bet on a US-Iran deal that reopens the Strait of Hormuz.
That exceeds any decline during the pandemic in 2020 and marks the biggest one-day drop on AAA data since November 22, 2008, amid the Great Recession.
The national average has now declined by almost 14 cents since hitting near four-year highs of $4.56 a gallon just last week.
To note: However, it’s too early to signal the all-clear on the energy crisis. In fact, oil and gasoline futures both rebounded on Thursday as new fighting in the Middle East underscores the fragile nature of the ceasefire.
The situation remains volatile, and markets have been on a roller coaster ride in recent weeks.
“We could get one headline and crude oil would be back up $5 a barrel,” said Andy Lipow, president of Lipow Oil Associates.
Despite the recent declines, gas is 49% more expensive than before the war started, when the national average was $2.98 a gallon. Gas, which had never been above $4 a gallon during either of President Donald Trump’s two terms before the Iran war, has now been stuck above that level for 59 straight days.
Since the war started, there have been 19 days where gas prices rose by more than 3.3 cents.