GasBuddy analyst Patrick De Haan said reports of a potential Iran-Oman agreement to reopen the Strait of Hormuz with tolls are weighing on hopes for lower gasoline prices.
Iran-Oman Deal Dimming Hopes
In a post on X on Thursday, De Haan said that the “Iran/Oman deal” to reopen the Strait of Hormuz was “less than optimal” and that it was “dimming hopes” for falling prices.
“Oil prices along with spot refined prices” had surged, he said, adding that the movement had partially offset the dip seen from Monday to Wednesday.
However, the analyst then said that despite the uncertainty, relief was “on the way for both.” De Haan then said that “national average still looks like it’ll fall below $4 for now.”
According to data collected by the American Automobile Association (AAA), the national average price of gas was $4.0633/gallon on Thursday, below Wednesday’s $4.0801/gallon. At press time, Brent crude was trading at $83.90/bbl, while the West Texas Intermediate (WTI) crude was $78.44/bbl.
Notably, the analyst had earlier told Benzinga that an agreement between the U.S. and Iran was the only way that there would be lasting relief against high gas prices at the pump for consumers across America.
Iran-Oman Agreement?
The comments follow reports that Iran was seeking a 5% to 7% toll on ships traveling the Strait of Hormuz, while Oman was reportedly seeking a 3% toll. Iranian officials were also saying that they received messages from the U.S. that it would be willing to go back to the Memorandum of Understanding (MoU) signed between the two nations in June.
Meanwhile, Gov. Gavin Newsom (D-CA) slammed President Donald Trump over the Strait of Hormuz, saying that the waterway remains closed despite what the latter claims. Last year, the waterway was responsible for transporting approximately 20 million barrels of oil per day.
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