Gas Prices Could Rise Due to Iran Deal Decision, AAA Says
Pump prices may climb up to $3.00 per gallon in the Washington metro area this summer due in part to the impact of economic sanctions on Iran, AAA mid-Atlantic warns.
“Though anticipated, today’s White House decision brings a wide variety of global and domestic impacts,” said John Townsend II, spokesperson for AAA Mid-Atlantic. “In the United States, one of the largest potential impacts could be increased crude oil prices due to reinstated sanctions on Iran. In turn, this could lead to increased gas prices later this summer.”
Motorists are already seeing a spike in gas prices, according Townsend. Current prices per gallon are averaging around $2.81 per gallon which is the highest since 2014.
So what’s the cause of the anticipated increase in gas prices?
When the United States agreed to the Iran Nuclear Deal in 2015, Iran started to sell more oil to international markets. The decision to withdraw from the deal could shrink shipments on world markets.
With the unofficial kick-off to summer just weeks away, prices are expected to increase, but a tapering trend may be emerging. https://t.co/yNqAEcLm9l pic.twitter.com/LsPLwsf9SD
— AAA Mid-Atlantic (@AAAMidAtlantic) May 9, 2018
Trump Announces Withdrawal from Iran Nuclear Deal, Maryland Leaders Respond
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