US Diesel Drops Below $5 as Oil Slides With Strait of Hormuz Reopening

US diesel prices fell below $5 a gallon for the first time in three months on June 24, hitting $4.98 a gallon, as global oil benchmarks continued to slide amid progress toward a peace deal with Iran and the partial reopening of the Strait of Hormuz to tanker traffic. The decline reflects easing supply concerns that had driven prices sharply higher since the conflict began on February 28.

WTI crude oil traded at $72.03 a barrel on June 24, its lowest level since March 3, 2026, according to CNN. The benchmark is now below its pre-war price of $76. Diplomats from multiple countries are pressing for a ceasefire, and nuclear inspectors are scheduled to visit Iran as part of the diplomatic push.

The US Senate voted 50-48 on June 23 to pass a war powers resolution directing President Trump to remove US armed forces from hostilities with Iran. Four Republican senators joined all Democrats in favor, though the White House has dismissed the measure as non-binding, according to RTE and TIME reporting. President Trump called the vote "poorly timed and meaningless."

The administration has sought $80 billion in additional defense funding for the campaign, which the Center for Strategic and International Studies estimates has cost roughly $40 billion so far. The White House insists the war powers measure carries no legal force, and military operations have continued.

The settlement price of the August 2026 WTI futures contract will be determined at the close of trading on the New York Mercantile Exchange on June 24. With WTI trading at $72.03 intraday, a small move in either direction will decide whether the settlement price falls above or below the $71.99 threshold.