The national average price per gallon of natural gas fell to $4.35 this week as crude oil prices fell amid reports of potential peace talks involving Iran.
WASHINGTON — After weeks of gains, natural gas prices appear to be backing down across the country, with the national average price down nearly 20 cents since a week ago as reports of peace talks with Iran sent oil prices lower.
AAA said the national average price for a gallon of regular gasoline was $4.356 on Saturday, down from $4.529 the previous Saturday. However, with the busy summer driving season underway, prices remain higher than in recent years.
According to AAA, California still has the highest average gas price in the country at about $6.04 per gallon, while Indiana has the lowest average gas price at about $3.72 per gallon.
The latest decline comes amid lower crude prices amid discussions surrounding a possible ceasefire deal with Iran and the reopening of the Strait of Hormuz, a key global oil and gas shipping route.
AAA said falling crude oil prices helped push natural gas prices lower this week, but the group warned the situation remained fragile and prices could surge again if talks collapse.
About one-fifth of the world’s oil and gas supplies pass through the Strait of Hormuz. Iran has largely restricted traffic in the waterway since fighting escalated earlier this year, causing global fuel prices to rise.
President Donald Trump met with his national security adviser at the White House on Friday to discuss a tentative deal to extend the ceasefire with Iran and reopen the strait. Iranian officials say no final deal has been reached.
Oil prices have fluctuated sharply in recent weeks as investors closely monitor developments in the Middle East.
AAA said gasoline demand also increased last week, rising from 8.76 million barrels per day to 9.25 million barrels per day as summer travel increased, according to the Energy Information Administration.
Despite recent declines, natural gas prices remain significantly higher than a year ago, with the national average for this time in 2025 at $3.16 per gallon.
