U.S. gasoline average falls below $4 per gallon as oil prices retreat

The average price of regular gasoline in the United States fell to $3.99 per gallon, slipping below the $4 threshold for the first time since mid-April, according to data compiled by GasBuddy from more than 12 million price reports at over 150 000 stations. The weekly decline of 9.3 cents brings the national average down 52.4 cents from a month ago, though it remains 91.1 cents higher than a year earlier. Diesel prices also eased, dropping 11.7 cents to $5.182 per gallon.

"Average gasoline prices fell in 47 states over the last week, with the national average dropping below $4 per gallon late Sunday for the first time since mid-April," said Patrick De Haan, head of petroleum analysis at GasBuddy.

De Haan attributed the price movement to a sharp fall in crude oil prices after reports of a possible U.S.–Iran deal that could ease tensions in the Strait of Hormuz. He noted that while most states saw price declines, a few experienced temporary increases before joining the broader trend. He added that further reductions are possible if oil markets remain stable and the diplomatic progress continues.

Analysts project that, based on current WTI futures and the American Automobile Association’s national average, gasoline prices could approach $3.75 per gallon by mid-summer, assuming no major disruptions such as severe weather or renewed geopolitical tensions.