A fragile cease-fire in the Middle East, along with an uninterrupted oil supply chain, has contributed to the stability of gasoline prices.
Summer road trips seem likely to avoid a significant increase in fuel costs.
The national average price of gasoline has remained around $3.20 a gallon this week, following a cease-fire agreement between Israel and Iran in a conflict that also involved the United States.
The price of regular gasoline, as monitored by AAA, was only a few cents higher than the national average a month prior, before Israel initiated attacks on Iran to hinder its nuclear program. Currently, gasoline prices are more than 20 cents lower than they were a year ago.
The last instance of lower prices for drivers in late June occurred in 2021, during a period when the pandemic reduced fuel demand. Typically, gas prices increase during the summer months due to heightened demand as many Americans embark on vacations and family visits.
AAA anticipates record-breaking travel for the Fourth of July, which falls on a Friday this year. An estimated 72.2 million Americans are expected to travel domestically next week, with nearly 62 million of them choosing to drive, marking a 2.2 percent increase from 2024.
“People are still prioritizing the travel itself,” stated a spokeswoman for the motor club. “Taking vacations, taking those trips, is still really important to a lot of Americans.”
Oil prices, a significant factor in gasoline costs, surged following Israel's attack on Iran, with the global oil price, known as Brent, rising approximately 7 percent. However, those prices decreased this week and have largely returned to levels seen before the attack, with Brent trading around $67 a barrel on Wednesday.
“Assuming the cease-fire holds and there’s no resumption of conflict, the gasoline prices should remain where they are,” remarked an energy adviser who previously served under President George W. Bush and is now president of a Washington research firm.
“The former president is keen to avoid an oil price spike and seeks to bring an end to the conflict,” he added.
Despite the recent increase, oil prices are trading roughly in line with those of previous summers. This year, the cost of crude oil has been kept low partially due to announcements from the OPEC Plus oil cartel regarding plans to enhance production.