Why $3 gas won't come back anytime soon, even with a ceasefire in Iran

(Yahoo News) In the hours before President Trump announced a temporary ceasefire with Iran on Tuesday, the average gas price in the United States edged up to $4.14 per gallon of regular fuel, according to AAA.

Days later, that price — now $4.15 per gallon — is still fluctuating.

Millions of cash-strapped Americans are probably hoping that the current ceasefire — a two-week pause to hammer out a lasting peace deal — will mean a swift return to where gas was before the U.S. and Israel went to war with Iran on Feb. 28: under $3 per gallon.

After all, haven’t the Iranians agreed as part of the ceasefire to lift their monthlong blockade of the Strait of Hormuz, which has effectively choked off one-fifth of the world’s oil supply? And if oil starts flowing out of the Persian Gulf again, doesn’t that mean gas prices will plummet? Unfortunately, no — or at least not anytime soon.

https://www.yahoo.com/news/us/article/why-3-gas-wont-come-back-anytime-soon-even-with-a-ceasefire-in-iran-233247728.html