After the war in Iran is finally over, gas prices might not drop quickly, according to some fuel industry analysts. The conflict has seen prices go up with no end currently in sight.
President Donald Trump has leveled the blame for the extra cost on commuting Americans on Iran’s regime. But most Americans don’t care who’s to blame, they just want the war to end and for oil prices to stabilize.
The ongoing war and the closure of the Strait Of Hormuz, a major source of petroleum imported into the United States, has led to the higher prices. But its unclear either when the war will end or when the Strait will re-open.
Analysts have cautioned that it will take time to get the Strait re-opened and functioning at pre-war capacity. And until it does, Americans can continue to expect to pay more at the pump.
“It will take weeks, if not months, to re-open the Strait of Hormuz and for global oil production and prices to normalize,” Mark Zandi, chief economist at Moody’s Analytics, told Money Magazine.
“There is also a lag between when oil prices decline and this results in lower gas prices,” he adds. “This goes to the old adage that gas prices go up like a rocket and fall like a feather.”
According to AAA’s gas tracker, the average cost of a gallon of gas nationwide today is $4.10.