AAA’s national average for a gallon of regular gasoline fell to $4.108 on Friday, extending the decline to a third consecutive week as crude oil slides on growing optimism for a U.S.-Iran peace deal. The motor club headlined its latest update “Pump Prices Fall for Third Straight Week,” a steady run of relief for drivers heading into the heart of the summer travel season.
The pullback tracks a sharp move lower in the oil market. WTI crude settled at $84.88 a barrel Friday and Brent at $87.33, the international benchmark’s lowest since early March, after President Trump said a deal that would reopen the Strait of Hormuz could be signed as soon as this weekend. Because retail gasoline lags the futures market by one to two weeks, more of that crude decline has yet to reach the pump — meaning the relief is likely to continue in the days ahead if the deal holds.
Diesel, a key cost input for freight and agriculture, eased to a national average of $5.259. The premium of diesel over regular gasoline remains historically wide, a legacy of the distillate-tight conditions the conflict produced, but it too has been grinding lower as crude retreats from its springtime highs.
State-level prices continue to span a wide range. Indiana is the cheapest market in the country at $3.39 per gallon, with Texas ($3.58), Oklahoma ($3.62), and Tennessee ($3.68) also among the lowest. California remains the most expensive at $5.81, followed by Washington ($5.57) and Hawaii ($5.58). The roughly $2.42 gap between the cheapest and priciest states reflects the usual mix of taxes, fuel-blend requirements, and refining and distribution costs.
The trajectory from here hinges almost entirely on the diplomacy. A signed agreement that reopens Hormuz and lifts the naval blockade would accelerate the decline, potentially pulling the national average toward levels not seen since before the war. A breakdown in the talks, by contrast, would risk reversing the trend quickly — the same sensitivity to Middle East headlines that has defined pump prices throughout the conflict.
For now, the direction is unambiguously lower, and the timing is favorable for households. Three straight weeks of declines have arrived just as summer driving demand peaks, offering a measure of relief after a spring in which the national average pushed to four-year highs on the supply shock from the Strait of Hormuz.
Continuing coverage: Gas Prices by State · Oil Prices · Geopolitics.