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Gasoline prices in Florida dropped 17 cents during the week ending on Sunday, April 12, averaging $4.03 per gallon, according to the weekly report from AAA – The Auto Club Group.
The decrease also amounts to a reduction of 20 cents in the last 10 days from the recent peak, although the price is still 32 cents higher than a month ago and 91 cents more expensive than a year ago.
The drop at the pump is attributed to two converging factors: an initial optimism about a potential ceasefire between the United States and Iran, which briefly eased fears of supply disruptions, and a decline of over 9% in gasoline futures last Tuesday in a single session, which pulled wholesale prices down.
Crude West Texas Intermediate (WTI) closed on Friday at $96.57 per barrel, a decline of approximately 13% — about $14 per barrel — compared to the previous week. However, following the decision that Trump ordered a naval blockade in the Strait of Hormuz, WTI was already trading above $104 per barrel, which could quickly reverse the gains seen at the pump.
However, the AAA warns that the relief may be temporary. This discount at the pump follows the declines in prices for both crude oil and gasoline futures registered last week, amidst a backdrop of uncertainty surrounding the reopening of the Strait of Hormuz and the possibility of new disruptions in global supply. It is important to note that Florida had recently reached this threshold, surpassing $4 for the first time in four years.
The price of oil surged this Sunday
The price of oil skyrocketed on Sunday night following President Donald Trump 's announcement that the United States Navy would block the Strait of Hormuz, after the failure of peace negotiations with Iran in Islamabad, Pakistan.
U.S. crude rose by 8%, surpassing $104 per barrel, while international Brent oil increased by more than 7%, reaching $103 per barrel.
Wholesale gasoline prices also rose by 6%, and heating oil—an indicator of fuel prices for airplanes—soared by 10% in the early trading sessions.
Trump made the announcement on Truth Social after the collapse of the high-stakes negotiations that lasted 21 hours.
"With immediate effect, the United States Navy, the best in the world, will begin the process of BLOCKING every single ship attempting to enter or leave the Strait of Hormuz," said Trump on Sunday.
This Monday, it was confirmed that the blockade is underway, and it was stated that "the Iranian fleet lies at the bottom of the sea." In a message, it was noted that the United States has destroyed 158 Iranian vessels.
The blockade officially began this Monday at 10:00 a.m., as the markets reacted with historic gains amid global energy uncertainty.
Analysts warn that the barrels prior to the closure of Hormuz will run out completely in a very short time if the situation does not change. It is very likely that gasoline prices will rise again in the United States.
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