US Gasoline Prices Fall for Sixth Straight Week

U.S. gasoline prices declined for a sixth consecutive week, supported by easing concerns over global oil supplies and growing optimism surrounding diplomatic progress between Washington and Tehran, a development that could help moderate inflationary pressures on American consumers in the months ahead.

According to data from fuel-price tracking firm GasBuddy, the national average price of gasoline fell by 14.1 cents per gallon over the past week to $3.85 per gallon as of Monday. Prices are now roughly 15% below the peak reached in May.

The decline was broad-based across most U.S. states. Gasoline prices dropped by about 25 cents per gallon in Colorado, 22 cents in Arizona, and 21 cents in Ohio over the past week, reflecting improved supply expectations and greater stability in energy markets.

Despite the recent downward trend, analysts caution that fuel markets remain vulnerable to disruptions, particularly given continued uncertainty surrounding shipping activity through the Strait of Hormuz, one of the world's most critical oil transit routes.

Alex Hodes, an analyst at StoneX, said lower fuel prices should help ease inflationary pressures but warned that expectations for a full return to normal energy flows through the strait may be overly optimistic.

"The coming months could still bring setbacks or unexpected developments," Hodes noted, pointing to lingering geopolitical risks in the region.

Although two small oil tankers reportedly transited the Strait of Hormuz on Monday, shipping volumes remain well below levels seen before tensions escalated in late February.

Refinery Outages and Hurricane Season Pose Additional Risks

Beyond geopolitical uncertainty, the market faces several domestic challenges that could slow or reverse the decline in gasoline prices.

Patrick De Haan, Head of Petroleum Analysis at GasBuddy, said gasoline prices currently face limited upside risk as long as some vessels continue moving through the Strait of Hormuz. However, he warned that any deterioration in U.S.-Iran relations could quickly alter market sentiment and renew pressure on energy prices.

At the same time, refinery disruptions and the start of the Atlantic hurricane season are emerging as potential threats to fuel supply.

TotalEnergies temporarily shut down operations at its Port Arthur refinery in Texas, which has a processing capacity of 238,000 barrels per day, after a lightning strike caused a power outage. The company expects the facility to resume operations within a week.

Separately, a fire broke out Sunday at Marathon Petroleum's Galveston Bay refinery in Texas. The refinery, one of the largest in the United States, processes approximately 631,000 barrels per day, raising concerns about potential disruptions to regional fuel supplies.

The decline in gasoline prices comes at a politically sensitive moment for President Donald Trump and Republican lawmakers. Lower fuel costs could help ease consumer frustration ahead of the U.S. midterm elections scheduled for November.