Gas prices in California are finally dipping below the $6 mark amid the Iran-US ceasefire, after President Donald Trump formally signed a temporary agreement with the Islamic Republic of Iran.

As of Thursday, the state’s average price for a gallon of regular gasoline stood at $5.60, down from $6.15 a month ago, according to the American Automobile Association. Prices also appear to be gradually easing, falling from $5.80 just one week ago.

The decline comes a day after President Trump signed a US-Iran memorandum of understanding during a formal dinner at the Palace of Versailles in France. The gathering featured Trump signing the agreement alongside French President Emmanuel Macron and Secretary of State Marco Rubio.

The deal aims to end the three-month conflict and open a 60-day window for nuclear negotiations. It was initially signed electronically earlier in the week but was formally sealed by Trump Wednesday evening in a candlelit event that officials described as a symbolic “key moment in history,” underscoring the administration’s efforts to cement the agreement as talks continue over Iran’s compliance and future concessions.

The diplomatic breakthrough sent shockwaves through global markets. US stocks rebounded sharply, with the tech-heavy Nasdaq Composite jumping more than 1% as investors breathed a sigh of relief, the Wall Street Journal reported.

The primary driver behind the falling pump prices is a steep slide in global oil markets. Brent crude futures — the international benchmark — tumbled to trade just a few dollars above their prewar level of roughly $72.50 a barrel, erasing the so-called “war premium” that had inflated energy costs for months.

While Californians may finally be seeing some relief, drivers in the Golden State are still paying significantly more than the national average. The average US gas price currently sits at about $3.90 per gallon.

Fuel prices are higher in California because of a combination of factors, including the nation’s highest state fuel taxes, strict environmental regulations requiring cleaner-burning fuel blends, and a vulnerable supply chain that can be disrupted by reduced in-state refining capacity.

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