WASHINGTON, D.C. – Gas prices in the last week or so have started to trend down and it’s all due to a possible peace deal between the US and Iran.
Thursday marks three months since the u-s launched attacks against Iran. Since then, people have felt the pain at the pumps.
“Last summer the national average a year ago was around $3.15 a gallon, so we’re seeing average prices up about a $1.25 cents a year ago,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “A lot of the difference a year ago is basically the US- Iran situation. The closure of the Strait of Hormuz now for three months has had a drastic impact on global supply and that is why prices are much higher.”
The US has said they’re working on a deal with Iran to end the conflict. Experts at GasBuddy explain that those negotiations have had an impact on gas prices.
“The national average down about sixteen cents a gallon in the last week,” said De Haan. “The average now just under $4.40 a gallon mark and the trend may continue as long as there’s positive developments in this potential deal between the US and Iran but ultimately whether or not this trend is long term or short term really is contingent on whether the Strait of Hormuz reopens in short order.”
During a Thursday press briefing with Treasury Secretary Scott Bessent, he did not confirm a final deal has been made, yet.
“It’s always a mistake to get out ahead of the President so again, it’s all going to be the President’s decision,” said Bessent when asked about a final peace deal is in place.
While most of the increase is due to the war, experts said typically around this time of year is when prices go up.
“As ongoing refinery maintenance, the change to summer gasoline and rising demand, so not all of the difference in the past three months is due to the Strait of Hormuz but the bulk of it is,” said De Haan. “But, it’s generally more healthy to compare to a year ago again that impact was about $1.25 more a gallon today than a year ago and a lot of that is from the Strait of Hormuz shutdown.”
