U.S.-Iran peace efforts have pushed oil and gasoline prices lower, but experts caution shipping through the Strait of Hormuz may not return to normal immediately.
Citi forecasts oil could fall to $60 as tensions around the Strait of Hormuz ease, and recent U.S.-Iran peace efforts have already been accompanied by declining oil prices and lower U.S. gasoline costs. Regular gasoline in the United States fell below $4 a gallon in June for the first time since March 30, according to AAA, after prices had climbed to their highest level in more than three years during the war involving the United States, Israel and Iran. The Strait remains a critical route for global crude shipments, and while markets are focused on Iran's plan to fully reopen the waterway, experts caution vessel traffic may not normalize immediately.