Gas Prices Could Fall With Iran Deal. Map Shows Biggest Winners by State
Summary
Gas prices in the U.S. fell to an average of $4.07 per gallon following reports that the U.S. and Iran reached an agreement to ease tensions and reopen critical oil shipping routes. This deal is expected to lower prices further, especially in states that had the steepest recent increases, though changes at the pump will take time.Key Facts
- The national average gas price dropped from over $4.50 in May to $4.07 per gallon.
- The U.S. and Iran have a framework deal to extend the ceasefire and reopen the Strait of Hormuz, a key oil route.
- States in the Midwest and West Coast saw the biggest recent gas price increases and may see the largest declines.
- Gas prices tend to lag behind crude oil prices because gas stations sell older, more expensive fuel first.
- The U.S. produces near-record amounts of oil but gas prices are still influenced by global oil supply and demand.
- The Strait of Hormuz usually carries about 20% of the world’s oil, so reopening it could ease global supply issues.
- Experts say price drops depend on whether the U.S.-Iran deal holds and how quickly oil tankers can move freely again.
- Some analysts warn that limited oil inventories due to the conflict may keep prices from falling too low.
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