The national average price for regular gas decreased to $3.999 per gallon on Thursday, marking the first time it has fallen below $4 since March 30. This decline represents a 52-cent drop over the past month and is the fourth consecutive week of decreasing prices. The reduction in gas prices follows a memorandum of understanding signed between the United States and Iran aimed at ending military conflict and reopening the Strait of Hormuz.
Gas prices began to decline after Memorial Day weekend, which typically marks the start of the summer driving season. Prior to this drop, prices peaked at $4.564 per gallon on May 21, the highest national average since 2022. In January 2026, prices had reached a low of $2.79 per gallon, indicating significant fluctuations in fuel costs throughout the year.
The recent peace deal between the U.S. and Iran may lead to further decreases in gas prices, although expert predictions regarding future price movements have been inconsistent. Regional variations in gas prices persist, with California currently having the highest average at $5.642 per gallon, while Indiana has the lowest at $3.399 per gallon.