Iran Ceasefire Agreement: Potential Relief for Gas Prices as National Average Surpasses $4 Per Gallon

CHICAGO (WLS) — Drivers might soon find some relief at gas stations as tensions with Iran ease.

Experts in the field anticipate a gradual decline in gas prices, potentially decreasing by a few cents each day. This trend suggests that within a week or two, the cost per gallon could dip below the $4 mark.

Due to the conflict with Iran, average gas prices in the U.S. have surged over 70 percent.

Following news of a ceasefire, crude oil prices have seen a significant drop.

Currently, AAA reports that the national average price for a gallon of gas stands at $4.14.

On social media, Gasbuddy’s Patrick De Haan posted that gas prices could start reversing nationally in 48-hours by a few cents every day.

Diesel prices may lag slightly, but are not likely to reach a record high.

The average diesel price remains around $5.54. But analysts are warning the public that gas prices may not return to levels they were before the war.

“I think we are likely to see that the sort of increase in fuel prices and other types of resources won’t go away,” Jessica Genauer, academic director of the Public Policy Institute at the University of New South Wales. “It’ll be a bit alleviated, but there will still be that hike in costs.”

Remember, gas prices were below $3 before the United States and Israel launched attacks against Iran.

Experts say despite the expected price drop, the ceasefire is temporary, meaning future pricing is unclear.