Gas prices are expected to soar as the U.S. withdraws from the Iran deal.
The decision to not re-enter into an agreement with the oil-rich country has crude oil prices spiking to it’s highest price since 2014.
What does it mean for you? This won’t be cheap.
“I mean, nobody likes that it’s going to increase,” said Lisa Thompson of Houston.
For as long as you’ve been behind the wheel, summer break has meant at least a 10-cent or 20-cent raise depending on where you live. We’ve understood that it’s the cost of having more time to travel as a family and oil companies rely on it.
While President Donald Trump stands firm with his belief that a return on sanctions against Iran will help protect American lives, the tension is creating unsuspected volatility in the fuel market. It’s important to note that the U.S. does not buy oil from Iran, but our allies do.
Six other countries were also involved in the original negotiations meant to waive financial sanctions on Iran’s exports like oil. Economists expect that if these sanctions were to take place immediately, the ripple effect would almost certainly send a shockwave through the oil markets.
This time last year, the average American paid almost 50 cents less than today for a gallon of gas. AAA shows the average fuel price around the country at $2.81 per gallon.
As Houstonians know, driving is as common as breathing and all seem to agree there’s no way around taking the hit to your wallet.
“We need the gas. I mean, we need to travel and move around,” Thompson said.
Prices are already taking a turn for the worst as $3 sticker shock is being felt around the city.