The U.S. and Iran have struck a peace agreement that could end a monthslong conflict in the Middle East and restore global oil supplies, but some analysts have warned that consumer prices may take some time to return to pre-war levels.
Inflation recently hit a three-year high, and some analysts warn consumer prices may take some time to come down.
The average price for a gallon of gas in the U.S. fell below $4 as of Thursday, as prices have dropped in each of the last 28 days after peaking at $4.56 in May, the longest such streak since November 2023, according to AAA data.
Iranian President Masoud Pezeshkian signed an interim peace deal on Thursday after President Donald Trump did the same hours earlier, and Pakistani Prime Minister Shehbaz Sharif noted the Strait of Hormuz—through which about one-fifth of the global oil supply flows—would be “instantly” reopened under the deal.
Even if boats start moving through the Strait of Hormuz, it would be a “very long, multi-month to multi-year process for things to fully normalize,” Patrick De Haan, GasBuddy’s petroleum expert, told CBS, adding pre-war gas prices likely would not be reached until “mid-to-late” 2027.
