NASHVILLE, Tenn. (WTVF) — A fragile ceasefire between the United States and Iran is sending oil prices on a roller coaster, and drivers are starting to feel the effects at the pump.
Oil is trading just above $90 a barrel after dipping below that mark earlier this week.
The average fuel price in the U.S. is holding around $4.42 a gallon. In Tennessee, the average is $4 — 20 cents lower than a week ago.
Cities like Montgomery, Dickson, and Bedford are seeing prices below $4, while Davidson is at $4.11. Williamson County is the state's highest at $4.32.
Experts say prices will keep dropping, but slowly. That is because the gas available now is made from crude oil bought weeks ago at higher prices.
The ceasefire with Iran continues as the war enters its third month, but the Strait of Hormuz remains closed — affecting about 25% of the world's seaborne oil shipments. Iranian state TV says the strait may reopen within a month.
Secretary of State Marco Rubio said the strait must reopen.
"Well, the Straits have to be open. They're going to be open one way or the other. So they need to be open. What's happening there is unlawful, it's illegal, it's unsustainable for the world, it's unacceptable. The straits need to be open, unimpeded, without tolls. And obviously that needs to happen immediately as soon as anything is agreed to," Rubio said.
If the ceasefire holds and the strait reopens, more oil supply could hit the market. That may lead to a surplus later this year — possibly bringing much lower gas prices for drivers.
Do you have more information about this story? You can email me at Tony.Sloan@newschannel5.com.
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