Memorial Day gas prices are the highest in years as Trump says he's close to a deal with Iran

• Nearly 40 million Americans will drive at least 50 miles from home during Memorial Day weekend.
• Memorial Day weekend gas prices, meanwhile, have reached a four-year high.
• That’s largely the result of Trump’s conflict with Iran.

President Donald Trump said on Saturday that a deal between the US and Iran to reopen the Strait of Hormuz is “largely negotiated.”

“Final aspects and details of the Deal are currently being discussed, and will be announced shortly,” Trump wrote in a Truth Social post. “In addition to many other elements of the Agreement, the Strait of Hormuz will be opened.”

Trump’s comments sent oil prices sharply lower at the start of the week, with crude futures falling more than 5% in early trading.

International benchmark Brent crude fell 3.9% to about $99.50 a barrel as of 9:40 p.m. ET Sunday, while US West Texas Intermediate crude dropped 4.3% to roughly $92.50 a barrel.

While oil futures reacted immediately to Trump’s statements, drivers may not see relief at the pump right away. Retail gasoline prices generally trail moves in crude oil prices because fuel purchased at earlier, higher wholesale costs can take time to work through the supply chain.

Markets are also likely to remain volatile, with oil continuing to swing on geopolitical headlines tied to the conflict in Iran, analysts said.

“We’ve been at this stage before, only for talks to break down. Therefore, the market will likely be more cautious about overreacting to these headlines,” wrote Warren Patterson, the head of commodity strategy at ING, on Monday.