Experts share what peace deal between U.S. and Iran means for gas prices
President Donald Trump on Sunday said that the United States and Iran have reached an agreement to end the war and reopen the Strait of Hormuz.
On Truth Social, President Trump wrote, "Ships of the world, start your engines. Let the oil flow!"
Dignitaries from both Iran and Pakistan confirmed an agreement has been finalized, but the exact terms of the deal are unclear.
The agreement is expected to be signed Friday in Switzerland, but experts at GasBuddy say the next few days will be very telling, especially if traffic begins moving in the Strait of Hormuz.
They say if the deal progresses in the right direction, we could see gas prices dip below $3.75 a gallon before the Fourth of July.
One Chicago driver told CBS News Chicago that he will believe it when he sees it.
"I just don't think it's going to be before the fourth," said David Saunders. "I think our president is kinda selling us something that probably really can't happen."
Saunders says he thinks it may take a while before the $ 4.55-a-gallon price at a Skokie gas station goes below the $4 mark.
"Unfortunately, I do delivery and catering, and so it's kind of pricey," he said.
But with the U.S. and Iran now signaling a deal has been struck, gas experts say crude oil is already down 5%. Meanwhile, shares are going up.
The future for the S&P 500 was up 1%, and the Dow Jones gained .8%.
Trump confirmed the initial agreement on social media and authorized an end to the U.S. naval blockade of Iranian ports. Iran confirmed their agreement but signaled implementation would not start until the deal is signed Friday in Switzerland.
Details of the agreement have not been released, but Iranian officials say they include an end to military operations in Lebanon. It's unclear if Israel agreed to cease operations there.
Broader negotiations on issues like Iran's nuclear program are expected to continue over the next 60 days. Some energy experts say it may take months for oil prices to stabilize. That's because energy experts say shipping and insurance companies want to be confident the pact will hold.
CBS News reports separate meetings with each side will take place in Doha leading up to the official signing.
The Iranian deputy foreign minister says the writing of the memorandum of understanding between the U.S. and Iran has been finalized and confirmed it is scheduled to be signed on Friday.
