Gas prices have been one of the most immediate ways people have felt the impact of the war in Iran.According to AAA Alabama, the statewide average for a gallon of regular gas is $3.85. Just a month ago, regular gas was going for $3.01 in Alabama—marking a significant jump in prices.Now that a deal has been reached to reopen the Strait of Hormuz, many drivers are asking the same question: When will prices finally start to come down?NBC reports said relief likely won’t happen overnight. Even with a temporary ceasefire, the agreement is only expected to last for two weeks. That uncertainty, along with shipping delays, means it could take much longer before lower oil prices translate into savings at the pump.The Strait of Hormuz is one of the most important oil routes in the world and carries about 20% of the global daily oil supply. When traffic through that corridor is disrupted, the effects can ripple quickly through energy markets and eventually reach consumers.Oil prices have dropped about 15% since the deal was announced, but that doesn’t mean drivers will see instant relief. NBC reported the waterway is likely backed up after the extended shutdown, leaving large amounts of oil waiting to move through the region.Because of that back-up, it may take weeks or even months before the supply flow normalizes enough to make a noticeable difference in gas prices.In the meantime, AAA Alabama spokesperson Sheri Falk said there are still ways drivers can stretch their money while waiting for prices to drop.“Right now, we’re watching and we’re waiting to see what happens next,” Falk said, “but this is the time to still price shop. Take advantage of those fuel perks and fuel rewards. Also, AAA has a free app that you can download. It has a fuel price finder where you can put in the area that you’re driving through, and you can see where you can find the cheapest gas prices.”It’s still unclear when the strait of Hormuz will reopen.
HOMEWOOD, Ala. —
Gas prices have been one of the most immediate ways people have felt the impact of the war in Iran.
According to AAA Alabama, the statewide average for a gallon of regular gas is $3.85. Just a month ago, regular gas was going for $3.01 in Alabama—marking a significant jump in prices.
Now that a deal has been reached to reopen the Strait of Hormuz, many drivers are asking the same question: When will prices finally start to come down?
NBC reports said relief likely won’t happen overnight. Even with a temporary ceasefire, the agreement is only expected to last for two weeks. That uncertainty, along with shipping delays, means it could take much longer before lower oil prices translate into savings at the pump.
The Strait of Hormuz is one of the most important oil routes in the world and carries about 20% of the global daily oil supply. When traffic through that corridor is disrupted, the effects can ripple quickly through energy markets and eventually reach consumers.
Oil prices have dropped about 15% since the deal was announced, but that doesn’t mean drivers will see instant relief. NBC reported the waterway is likely backed up after the extended shutdown, leaving large amounts of oil waiting to move through the region.
Because of that back-up, it may take weeks or even months before the supply flow normalizes enough to make a noticeable difference in gas prices.
In the meantime, AAA Alabama spokesperson Sheri Falk said there are still ways drivers can stretch their money while waiting for prices to drop.
“Right now, we’re watching and we’re waiting to see what happens next,” Falk said, “but this is the time to still price shop. Take advantage of those fuel perks and fuel rewards. Also, AAA has a free app that you can download. It has a fuel price finder where you can put in the area that you’re driving through, and you can see where you can find the cheapest gas prices.”
It’s still unclear when the strait of Hormuz will reopen.