This week, the national average for a gallon of gasoline dipped to $4.35, thanks to a decline in crude oil prices. This change is attributed to emerging reports of potential peace talks involving Iran, which have influenced oil markets.
In Washington, the trend of rising gas prices seems to be reversing, with a notable decrease nationwide. Over the past week, the average price per gallon has fallen by nearly 20 cents, as the anticipation of peace negotiations with Iran has led to a drop in oil prices.
According to AAA, as of Saturday, the cost of a gallon of regular gasoline averaged $4.356, a significant decrease from the previous week’s $4.529. Despite this decline, gas prices remain higher than in recent years, coinciding with the onset of the busy summer driving season.
California continues to experience the highest average gas prices in the nation, with costs hovering around $6.04 per gallon. In contrast, Indiana benefits from the lowest average price, approximately $3.72, as reported by AAA.
This recent price reduction follows a decrease in crude oil costs, driven by discussions of a potential ceasefire involving Iran. A crucial element of these talks is the reopening of the Strait of Hormuz, a vital corridor for global oil and gas transportation.
AAA said falling crude oil prices helped push gas prices lower this week, though the organization warned the situation remains fragile and prices could spike again if negotiations break down.
Roughly one-fifth of the world’s oil and gas supply passes through the Strait of Hormuz. Iran has largely restricted traffic through the waterway since fighting escalated earlier this year, contributing to higher fuel prices globally.
President Donald Trump met Friday with national security advisers at the White House to discuss a tentative agreement that would extend a ceasefire with Iran and reopen the strait. Iranian officials said no final agreement had been reached.
Oil prices have fluctuated sharply in recent weeks as investors monitor developments in the Middle East.
AAA said gasoline demand also rose last week, according to Energy Information Administration data, increasing from 8.76 million barrels per day to 9.25 million barrels per day as summer travel ramps up.
Despite the recent decline, gas prices remain significantly higher than a year ago, when the national average stood at $3.16 per gallon at the same time in 2025.