Gas prices may take months to drop after US, Iran peace deal
Alabama drivers paying $1 more per gallon since conflict began in February
BIRMINGHAM, Ala. (WBRC) - A peace deal between the United States and Iran is expected to be signed Friday, opening up the Strait of Hormuz and letting oil flow freely through that region for the first time in months.
But drivers may have to wait before seeing significant savings at the pump.
AAA Alabama says as of Monday, the state average for a regular gallon of unleaded gas is $3.68. That price has been dropping since May 22, when it was $4.17 a gallon. Prices dropped 49 cents over the last month before the deal was even announced.
When President Donald Trump announced the agreement Sunday, AAA Alabama spokesperson Sheri Falk said crude oil prices dropped to $80 a barrel. But she warned it may take months for drivers to see any significant savings at the pump.
“We just kicked off the summer travel season, so those prices were pretty high a few weeks ago. Now we’re seeing that peak come down a little bit. Not a lot, but a little bit, so I think with the reopening of the Strait, again, we will see prices come down, but it’s definitely going to take some time,” Falk said.
When the Iran conflict began on Feb. 28, Falk said the state average for unleaded gas was $2.65. From the start of the conflict to now, drivers are paying a dollar more per gallon.
AAA says another price drop is possible, but could take several months.
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