WASHINGTON, June 1, 2026, 17:01 EDT
- U.S. regular gasoline was $4.322 a gallon on Monday, according to AAA, slipping from $4.507 the week before. That’s still up about $1.18 from the same time last year.
- Drivers in New Hampshire and Colorado are seeing some relief, but gas prices are still elevated. AAA put New Hampshire at $4.372 and Colorado at $4.346 as of Monday.
- Oil’s drop could reverse. Prices surged Monday as Iran stopped indirect swaps with the U.S. and the market faced fresh blockade fears.
Gasoline prices in the U.S. dropped again on Monday, with drivers seeing lower costs at the pump as the summer travel season kicks off. The decline followed a sharp pullback in crude oil prices.
Gas prices slipped again. AAA said the national average for regular gas was $4.322 a gallon, down 1.4 cents from Sunday and 18.5 cents from a week ago. That’s still above the $3.144 mark seen last year, with prices not back to pre-Middle East conflict levels.
This is why the move grabs attention now. Summer demand is picking up, inventories are tight, and fresh supply disruptions in crude can filter fast into wholesale gasoline prices ahead of the pump.
Broad drops in gas prices are showing up, but the gains aren’t the same everywhere. WMUR said New Hampshire’s average for regular gas slid to $4.38 from $4.47 a week ago, as AAA’s state table on Monday showed $4.372 for New Hampshire. AAA showed Colorado at $4.346 for regular gas, while Denver prices fell almost 50 cents over the week, according to local reports citing GasBuddy.
Oil prices jumped again, creating more pain for drivers. Brent crude closed at $94.98 a barrel on Monday, climbing 4.2%. U.S. West Texas Intermediate, the top domestic benchmark, was up 5.5% to $92.16 as Iran cut off indirect talks with Washington and new shipping risks popped up, according to Reuters.
AAA last week pointed to falling pump prices after crude dropped on news of peace talks with Iran. The group mentioned EIA data showing U.S. gasoline demand climbed to 9.25 million barrels per day from 8.76 million, while supplies fell to 211.6 million barrels.
There is little buffer left. U.S. gasoline stocks have declined for 15 weeks in a row—that ties the record for the longest streak, Reuters columnist Gavin Maguire reported, referencing EIA data. Inventories are now the lowest for this time of year since 2014. If the EIA’s next update on June 3 shows another decline, it would break the streak record.
Patrick De Haan, an analyst at GasBuddy, told Global News that any pullback might not last if talks break down. “If there is no deal, then we are probably worse off every day that this continues,” he said. Drivers, he added, could soon need to “dig a little deeper” again. Global News
Oil trade is moving. U.S. crude exports hit a record 5.6 million barrels a day in May as refiners in Asia and Europe turned away from Middle Eastern supply, Kpler data cited by Reuters showed. “It’s not a surprise to see Asia pulling so much given the loss of barrels from the Mideast Gulf,” said Matt Smith at Kpler. Reuters
There’s clear downside risk. If a lasting peace deal is reached and the Strait of Hormuz reopens faster, fuel prices could face a cap. Another wave of attacks or a tougher blockade would probably send crude and wholesale gasoline higher again. The EIA said earlier that even after fighting stops, getting full oil flows back through the strait could take months, which would keep a risk premium in prices.
Diesel continues to be a problem for fuel prices. AAA said the U.S. diesel average was $5.448 a gallon on Monday, down from $5.599 last week but still well higher than the $3.524 level a year ago. That price hits trucking and delivery.
Gas prices are falling with last week’s oil slide. The question now is if retail prices keep dropping after crude bounced on Monday, or if the fall stops ahead of peak driving season.
