Gas prices in the U.S. hit a four-year high in May 2026, but it seems that things have finally turned a corner for the better. AAA’s Fuel Tracker shows that gas prices have dropped noticeably, with the average sitting at $3.8470 as of June 30. And with the July 4 holidays coming up soon, this means that travel costs for the weekend will be much lower than they otherwise would have been.

According to a GasBuddy report, the average price of gas nationwide has dropped by around $0.069 over the past week, heading into the July 4 weekend. That brings the national average to around $3.78 per gallon, according to its data, though this number, of course, differs by state. GasBuddy notes that the most common rates drivers have seen recently are $3.49, $3.69, $3.59, $3.79, and $3.99 per gallon. AAA data shows most state averages are currently below $4.00, so you likely won’t have to pay more than that to fuel up if you’re planning on taking a drive this Independence Day weekend. 

It’s worth noting, though, that GasBuddy’s report suggests that some price-cycling states may see prices rise again before July 4 — although states that increased prices last week will likely see prices drop. Overall, we’re still a ways off from the $3.15 average of the previous July 4 weekend, but any dip in fuel costs is a welcome sight at this point.

Much of the reason gas prices have dropped comes down to developments in the Iran War. Continued negotiations between the United States and Iran have led to the gradual reopening of the Strait of Hormuz, allowing for more crude oil to move through the waterway than in recent months. While peace talks remain shaky and the movement of resources through the Strait has yet to reach pre-war levels, this is still a positive sign for the time being. Assuming the U.S.-Iran talks don’t deteriorate, this downward trend will likely continue. But it is still a volatile situation nonetheless.

With that said, just because gas is getting cheaper doesn’t mean it’s cheap everywhere. State tax rates, environmental regulations, demand, and other factors lead to inconsistent gas prices across the U.S. While gas is indeed below $4.00 in most states, it’s still expensive overall. On the higher end, California’s state average is $5.43, New York is $4.11, and Alaska is $4.83, per the AAA. These prices are down from the past few months, but there’s still a long way yet to go.

Even with gas prices dropping ahead of July 4, they’re still pretty high at this point, no matter where you are. Even if they continue to fall, you should still be aware of the many ways to save money on gas to stretch your dollar even further.