The national average for a gallon of gas dropped to $4.35 this week as crude oil prices eased amid reports of possible peace talks involving Iran.
WASHINGTON — Gas prices appear to be easing a bit nationwide after weeks of increases, with the national average falling nearly 20 cents since a week ago as oil prices dropped amid reports of peace talks with Iran.
AAA said the national average for a gallon of regular gasoline stood at $4.356 Saturday, down from $4.529 last Saturday. However, prices remain elevated compared to recent years as the busy summer driving season gets underway.
California continues to have the nation’s highest average gas price at about $6.04 per gallon, while Indiana had the lowest at about $3.72, according to AAA.
The recent drop comes as crude oil prices declined amid discussions surrounding a possible ceasefire agreement involving Iran and the reopening of the Strait of Hormuz, a key global shipping route for oil and gas.
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.
