Gas prices are falling. Will it last? Experts explain
Summary
Gas prices in the U.S. have recently dropped to an average of $4.26 per gallon after reaching a peak in May. This decrease happened because oil prices fell due to lower demand and hopes for an agreement to reopen a key shipping route disrupted by the Iran war.Key Facts
- Gas prices fell by 30 cents (6.5%) since May 21 but remain much higher than before the Iran war began.
- The national average price per gallon was $4.26 on June 3, 2026.
- California has the highest gas prices in the U.S. at about $5.99 per gallon; Georgia has the lowest at around $3.79.
- The Iran war led to the closure of the Strait of Hormuz, which carries about one-fifth of the world’s oil supply.
- Oil prices fell to around $86 per barrel, a 20% drop over ten days, helping bring gas prices down.
- The U.S. produces more oil than it uses but still faces global oil price changes due to international supply and demand.
- Experts warn that if the war continues, oil and gas prices could rise again, possibly above $5 per gallon next month.
- Gas sellers are currently making higher profits per gallon, which could allow prices to stay steady or even fall more despite oil costs.
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