Well, kiss your wallet and summer plans goodbye because gas prices will leap into crazy territory soon. Yeah, we expected them to kiss the $3 mark by Memorial Day and level off from there. But, then our President happened.
Darien Daily Voice reports that, whether or not you support the Iran Deal, withdrawing from it will cost us. A bunch. Like, a whole lot since we all rely on gas to drive to and from work.
Not only that, the broken deal now reinstates the sanctions our country placed on Iran before we entered into the 2015 agreement.
Which means we risk limited oil exports now. Which means that while a barrel of oil currently trades at its highest level since 2014, at $70 barrel, prices could shoot up to $85 a barrel and beyond.
So, AAA warns that now that we exited the Iran Nuclear Agreement, gas prices will fluctuate accordingly. By that, they mean, skyrocket.
Prices could surge because the US exit might create more instability in the Middle East. Officials say the civil unrest overseas did contribute to several price hikes.
Democratic Congressman Sean Patrick Maloney explained how this deal will affect the price at the pump:
“If we scrap the deal, abandon our NATO allies, and the Iranians start racing towards a nuclear weapon, we could easily find ourselves in another ground war in the Middle East.”
Meaning that this deal carries the possibility of striking up yet another nuclear arms race. Which, if that does happen, it’ll coincide when oil demands typically reach their peak. You know, summer tourism.
And, with that, it creates a delicious concoction that will sap any and all extra cash from our wallets.
As of now, gas prices are 45 cents higher than around this time last year. They are also around 15 cents higher than this time a month ago.
But, the kicker? Gas prices haven’t seen these highs since 2014 and this was before President Trump reneged on the Iran Deal. So, add that to the mix, we might see prices that’ll give us war flashbacks to 2008 when gas was $4 a gallon.
Hopefully that won’t happen but market watchdogs don’t seem too optimistic. Basically, backing out of the deal created a ton of uncertainty.
Good news: the chips aren’t done falling into place. The bad news: we have a pretty solid idea of where they’ll end up.
So, gas up now if you can. It might be a looooong while before we see prices below $3 at the pump again.
What’s your official take? Do you think ending the Iran Deal will benefit gas prices in the long run or will this come back to bite us in the you-know-where?