GasBuddy analyst Patrick De Haan has warned that Iran’s demands for concessions from the U.S. over the Strait of Hormuz‘s reopening risk sending oil and gas prices climbing again as tensions continue between Washington and Tehran.
Gas May Not Remain Below $4/Gallon
In a post on X on Sunday, De Haan said that the national average price for a gallon of gas in the U.S. fell below the $4 mark based on live data; he also pointed to a decline in diesel prices.
However, the analyst warned that Iran was “trying to win new concessions” over the Strait of Hormuz, which is casting a shadow of uncertainty over the waterway’s reopening. De Haan also said that there was a “rising risk of prices eventually climbing again.”
Iranian Foreign Minister Abbas Araghchi on Sunday said that the U.S. would need to meet its demands for the Strait of Hormuz to reopen.
Tehran has called for compensation for the damages sustained from U.S. attacks, as well as an end to sanctions and military threats against Iran. The removal of a U.S. naval blockade is also among Iran’s demands for concessions to reopen the Strait of Hormuz.
Oil prices increased marginally, with the West Texas Intermediate (WTI) crude surging 0.59% to $78.64/bbl at the time of writing this article. Brent crude oil also reported a 0.83% uptick to $84.24/bbl at press time. United States Oil Fund (NYSE:USO) also surged 2.18% to $120.55 during overnight trading on Friday.
However, data from the American Automobile Association (AAA) showed that prices on Sunday remained above the $4 mark, with the national average price at $4.0121/gallon.
SPR Drawdown To End in September
De Haan also said that the U.S.’s Strategic Petroleum Reserve (SPR) drawdown “will end sometime in September” and that the reserve could decline slightly, but “should remain above ~275 million barrels.” He also said that a 172 million barrel release that had been authorized was “nearing completion.”
Iran-Oman Deal
De Haan had earlier said a proposed agreement over the Strait of Hormuz between Oman and Iran could dim hopes of an agreement to reopen the Strait of Hormuz. Iran was reportedly seeking a 5% to 7% toll on ships traversing the waterway, while Oman sought a 3% toll.
Meanwhile, President Donald Trump‘s former Counterterrorism Chief Joe Kent reiterated his stance that the U.S. should declare victory over Iran and leave the region.
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