Gas Prices to Drop to Two Dollars per Gallon or Less (Because of Iran)
Generally speaking, in recent history the USA and Iran haven’t liked each other very much. Even during recent negotiations, people from Iran chanted “Death to America” and the two countries have referred to each other as “the Great Satan” and part of “the Axis of Evil.”
Thanks to this enmity, there have been many billion-dollar sanctions against Iran, ravaging trade with the country.
And now, thanks to an agreement to have those sanctions removed (and to curb Iran’s nuclear program), there is one Iranian product that will soon flood into the market:
Iranian oil hasn’t been sold to the US (or many other Western countries) since 1995. Now, with its rush back to the wider market, crude oil prices–and therefore gasoline prices–are expected to fall.
According to Tom Kloza, chief oil analyst with the Oil Price Information Service, “Once we get past Labor Day, we should see gas falling by 10 to 15 cents a month. By December a lot of places are going to see gasoline at $2 or less.”
This influx of Iranian oil will add to lowered prices due to other factors–such as booming oil production in North America, OPEC, Russia, and Iraq–that boost supply, as well as economic problems in Europe and China that lower demand.