Crude oil prices sank to their lowest levels since at least March, and gasoline prices are expected to start dipping within a week or two, following President Trump’s announcement of an agreement with Iran to reopen the Strait of Hormuz.

Brent crude oil prices dropped 4.8% Monday to settle at $83.17 a barrel, while West Texas Intermediate crude plunged nearly 5% to $80.75 a barrel. US oil had briefly dropped below the $80 mark for the first time since March in early trading.

Though still higher than pre-war prices, the crude benchmarks fell to three-month lows after earlier hitting as high as $126 a barrel during the Middle East conflict.

Currently, prices at the gas pump are hovering around $4.06 per gallon, according to the latest data from the American Automobile Association.”If the peace holds, expect gas prices to begin dropping over the next one to two weeks in response to the decrease in crude oil prices,” Matthew Reisener, a senior national security analyst at the Center for Maritime Strategy, told The Post.

“However, it will likely take several months for gas prices to reach their pre-war levels,” Reisener added. “The uptick in oil tankers transiting the Strait in the coming weeks will increase the global crude oil supply and lower prices, but it will take some time for maritime traffic to fully resume, and many Gulf states suffered significant damage to their oil and gas infrastructure during the war, which will take time to repair.”

“The signing of the peace framework should provide some immediate relief, but consumers should still anticipate paying above-average rates for gasoline for the foreseeable future.”

Before the war, gas prices were just below $3 a gallon nationally. 

In a Sunday post on Truth Social, the president wrote: “The Deal with the Islamic Republic of Iran is now complete.”

“Congratulations to all! I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!”

The strait – a vital maritime route in the Persian Gulf for 20% of the world’s oil supplies – was slated to reopen Friday when a deal is signed in Switzerland, according to officials.

US stocks jumped Monday as traders hoped for a swift end to the world’s worst-ever energy supply disruption, which has raised US gasoline prices above the $4 mark and reheated inflation.

The Dow Jones Industrial Average had soared 579 points, or 1.1%, to an intraday record high, while the S&P 500 and Nasdaq rose 1.7% and 2%, respectively.

National average gasoline prices came to $4.07 a gallon Monday – a 10% decrease from a month ago, though still roughly 36% higher than pre-war prices, according to AAA.

Gasoline prices typically lag behind oil benchmarks by one to two weeks, and the Trump administration has insisted the cost of gas will come down quickly once traffic through the strait is fully resumed.

But analysts have warned that it could take months for global supplies to normalize, especially in the wake of damage to Middle Eastern energy facilities. Oil executives have also sounded the alarm over dwindling energy stockpiles.

“Within two weeks, if it stays open and the deal looks stable, we can expect the national average to drop to mid-high $3 range,” Joe Adamski, managing director of ProcureAbility, a supply chain consultancy, told The Post.

“But the rest will take much longer. It will take up to six months for tanker traffic flows to reach normal; demining and facility repairs will take anywhere from six months to two years, that we don’t know until full assessments can be done.”

Pakistan’s Prime Minister Shehbaz Sharif announced the peace deal in a post on X.

“Both sides have declared the immediate and permanent termination of military operations on all fronts,” he wrote.

Vice President JD Vance said Monday the US and Iran have “already signed” a peace agreement ending their three-and-a-half month-long war, though the text has not yet been released.

The signing of the deal is expected to launch a 60-day negotiating process to determine the fate of Iran’s nuclear program and the extent of sanctions relief, officials said.

According to details released by Iran, the nation has agreed to not build a nuclear weapon and to reopen the maritime route if the US releases $25 billion in frozen assets.