Gas prices dip below $4 for 1st time since March but remain 25% higher than last year

The U.S. average price for a gallon of regular gasoline fell below $4 for the first time since March, offering relief to consumers facing elevated living costs. AAA data showed regular at $3.999 per gallon on Thursday, with California averaging about $5.64 and regional variations reflecting supply and tax differences. The decline aligns with easing crude prices as talks of a U.S.–Iran peace deal and Hormuz reopening fed optimism that energy costs may stabilize, though prices remain well above a year ago. Analysts caution that broader inflation dynamics and refinery constraints will determine how quickly prices retreat further.