Every time I fill my gas tank, I feel personally assaulted. Well, insulted, at least, in the wallet, anyway.
Even if you’re not driving much, the rise in gas prices is affecting you. Everything from groceries to delivery fees to home services suddenly skyrocketed to near-scandalous levels.
When gas spikes, everything else does, too. I’m getting to the point where every time I hear the words “Straight of Hormuz”, I hold my breath and lose my mind a little more.
Things may be changing, but what does that mean for Arizona’s gas prices? We’re all watching the newly signed U.S.–Iran agreement and wondering: will this new development actually give us some relief? Here’s what experts think.
Will Arizona Gas Prices Drop Soon After The Iran Agreement?
As I write this, reports are circulating that the United States and Iran have signed a Memorandum of Understanding (MoU), ABC News reported.
The agreement states that “the critical Strait of Hormuz will be reopened to commercial traffic, the U.S. will lift its naval blockade of Iranian ports, and fighting will stop for 60 days while both sides negotiate the terms of a final deal on nuclear weapons and material.”
Experts are hopeful that this will help reduce tensions and lower gas prices.
Signs of Relief in Gas Prices
There are already some early signs of relief. After the announcement, oil prices dropped, and global crude prices fell about 3–4%, as markets anticipated a return of supply, according to TheGuardian.com.
Hopefully, the cost of gasoline in Arizona will start going down. Across the U.S., gas prices had already started to ease following their late-May highs. The price fell from about $4.56 per gallon to just over $4.00 in anticipation of the deal, according to Politico.com.
It’s not time for celebration, just yet. According to experts, this may not be the relief we hope for. They caution that this first drop is just the market responding to the news. Things could change as this continues to develop.
Why Aren’t Prices Falling Faster In Arizona?
So, when can Arizona drivers expect relief?
Economists say we need to watch and wait. Meaningful price drops could take 3 to 6 months, according to Time.com, and we probably won’t see a noticeable difference until late summer or early fall.
The main issue is time. Even with an agreement in place, and assuming things continue to improve, it takes a while for oil to move from the Middle East to your local Arizona gas station. Energy analysts say it can take weeks or even months for crude oil to be shipped, refined into gasoline, and distributed to stations across the state.
Oil shipments have been delayed for months; restarting production and shipping safely through the Strait of Hormuz is a slow process.
How Arizona is Handling High Gas Prices
If experts are correct, if all things continue to improve between Iran and the U.S., if oil production gets up and running at a sustainable level—if all of these things stabilize—we’re still in for a wait as we watch fuel costs continue to hover at obscene levels.
At this point, many of us have already pivoted on our summer plans. Anyone up for a staycation?
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