Iran-Oman Deal Threatens Lower Gas Prices, Analyst Says
Gas prices have not fallen as much as hoped due to reports of a potential Iran-Oman agreement to reopen the Strait of Hormuz with tolls. According to Patrick De Haan, GasBuddy analyst, this deal is 'less than optimal' and dimming hopes for lower gasoline prices.
The Strait of Hormuz was responsible for transporting approximately 20 million barrels of oil per day last year. The proposed agreement would see Iran seeking a 5% to 7% toll on ships traveling the waterway, while Oman would seek a 3% toll.
Despite this uncertainty, De Haan remains optimistic that relief is 'on the way for both' and notes that the national average gas price still looks set to fall below $4. The current national average price of gas stands at $4.0633/gallon, down from Wednesday's $4.0801/gallon.