Gas Prices Dip Slightly, but a Fresh U.S. Strike on Iran Just Ended Weeks of Relative Calm
by: GasBuddy
Published: August 31, 2026
Chevron Prices for gas in Huntington Beach
BOSTON...The nation’s average price of gasoline has fallen 3.2 cents over the last week and stands at $4.01 per gallon, according to GasBuddy® data compiled from more than 12 million individual price reports covering over 150,000 gas stations across the country. The national average is down 7.3 cents from a month ago and is 86.2 cents per gallon higher than a year ago. The national average price of diesel fell 1.4 cents in the last week and stands at $5.570 per gallon.
“Average gasoline prices fell in slightly more than half of states over the last week while diesel declined in roughly half, as oil prices moved lower and offered some modest relief at the pump,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “Over the weekend, the Trump administration struck a major deal with Venezuela, a signal that the White House remains concerned about elevated fuel prices — though in reality, any benefits from increased Venezuelan output will take years to fully materialize and are unlikely to move the needle in the near term. The factors with the most immediate impact on where prices go from here remain the ongoing developments between the U.S. and Iran and continued Ukrainian attacks on Russian oil refineries, both of which continue to exert outsized influence on global fuel markets. Motorists should expect continued volatility in the weeks ahead.”
OIL MARKET DYNAMICS
Oil prices surged to start the week after the U.S. military struck Iranian rocket launchers Sunday that were preparing to deploy mines into the Strait of Hormuz, ending weeks of relative calm and snapping markets out of a more subdued trading range. The strike reverses a cautious shift in sentiment from last week, when Brent fell more than 5% as traders began viewing the standoff as more of an economic and sanctions confrontation than an immediate supply threat — Goldman Sachs had estimated Persian Gulf exports had recovered to 15-16 million barrels per day, and an Iranian official said diplomacy with the U.S. “isn’t impossible.” In early Monday trade, WTI was up $2.86 to $86.26 per barrel, above last Monday’s $85.51, while Brent gained $2.72 to $90.82 compared to $93.17 a week ago, with every military exchange or diplomatic signal still capable of moving prices several dollars in either direction. “Oil prices continue their roller coaster ride following a decline last week, renewed military strikes in the Middle East are supporting oil prices. All eyes will be if we head again to a de-escalation phase or not,” added Giovanni Staunovo, UBS commodities analyst via e-mail.
OIL AND REFINED PRODUCT SUPPLIES
The EIA’s Weekly Petroleum Status Report for the week ending August 21, 2026, showed U.S. commercial crude oil inventories were essentially unchanged, rising just 0.1 million barrels, and are now 1% above the five-year average for this time of year, while the SPR fell 3.7 million barrels to 289.7 million barrels. Gasoline inventories fell by 2.5 million barrels and are about 6% below the five-year seasonal average, while distillate inventories fell by 2.2 million barrels and are about 14% below the five-year seasonal average. Refinery utilization rose 0.2 percentage points to 97.4%, while implied gasoline demand, the EIA’s proxy for retail demand, rose 354,000 bpd to 9.043 million barrels per day.
GAS PRICE TRENDS
The most common U.S. gas price encountered by motorists was $3.79 per gallon, unchanged from a week ago, followed by $3.69, $3.99, $3.89, and $3.59, rounding out the top five most common prices.
The median U.S. gas price is $3.88 per gallon, down 1 cent from last week and about 13 cents lower than the national average.
The top 10% of stations in the country average $5.34 per gallon, while the bottom 10% average $3.37 per gallon.
The states with the lowest average prices: Indiana ($3.38), Texas ($3.57), and South Carolina ($3.60).
The states with the highest average prices: California ($5.63), Hawaii ($5.35), and Washington ($5.24).
Biggest weekly changes: Colorado (-19.4¢), Oklahoma (-16.2¢), Ohio (-16.0¢), Iowa (-14.4¢), Minnesota (-12.5¢).
DIESEL PRICE TRENDS
The most common U.S. diesel price stood at $4.99 per gallon, unchanged from last week, followed by $4.89, $4.95, $4.94, and $4.97, rounding out the top five most common prices.
The median U.S. diesel price is $5.45 per gallon, down 4 cents from last week and about 12 cents lower than the national average.
Diesel prices at the top 10% of stations in the country average $6.13 per gallon, while the bottom 10% average $4.98 per gallon.
The states with the lowest average diesel prices: Oklahoma ($5.08), Texas ($5.17), and Kansas ($5.19).
The states with the highest average diesel prices: California ($7.29), Hawaii ($6.97), and Washington ($6.35).
Biggest weekly changes: Colorado (-15.6¢), California (+14.8¢), Iowa (-13.6¢), Oregon (+12.9¢), Utah (+12.4¢).