Economists and analysts say it will take months for the energy market to return to pre-war levels|risingthermals|CC BY-NC 2.0
Gas prices slipped below $4 a gallon nationwide on Monday after oil markets responded positively to a US-Iran agreement.
The average price now stands at $3.99, down more than 9 cents from last week, according to GasBuddy, but still above pre-war levels.
The oil benchmark, Brent crude, also dropped to $82.91 a barrel on Monday. Concurrently, US crude sank 5.5% to $80.21.
While details of the deal are not known, Trump and Iranian officials have signaled that the blockade will be lifted and the crucial Strait of Hormuz reopened. But the agreement leaves several key questions, including the status of Iran’s nuclear program, to be addressed in future negotiations.
Economists and analysts say it will take months for the energy market to return to pre-war levels. Furthermore, the Middle Eastern oil wells that were shut down during the conflict will require weeks to resume production safely.