President Donald Trump's recent ceasefire announcement between Iran and Israel could mean lower gas prices... that's according to Gas Buddy petroleum analyst Matt McClain.
"By the end of this week, we should see prices begin to fall," he said. "It's really tough to tell you exactly how much right now, because crude oil is falling so quickly. I think we can safely say a minimum of 10 cents or more per gallon, and I think that's on the conservative side. I actually think it'll be a little bit more."
With that said, one of the biggest questions about the ceasefire is if it will actually happen and for how long?
"One has to assume that he cleared this with Netanyahu before announcing it, but that's still a little murky," said UCSB Professor Emeritus of Global Studies Mark Juergensmeyer. "The degree to which Israel will go along with this it would be, of course, catastrophic, is Israel now decided to keep fighting in defiance of Trump. I can't imagine that will happen."
While unlikely, he says even if the ceasefire fails, the closure of the Strait of Hormuz is unlikely, which is good for gas prices.
"There have been many threats to close the Strait of Hormuz in the past it's never been done," said Juergensmeyer.
"It would not create any shortages here, but the price point would certainly go up, and the reason why I say that is a good chunk, in fact, the vast majority of oil and for that matter gasoline comes from either the us domestic production or Canadian oil or Mexican," said McClain.
