$2 Gas Coming Back : Gas may drop to $2 a gallon thanks to Iran nuclear deal

U.S. drivers can look forward to $2 gas later this year, thanks in part to the Iran nuclear deal announced Tuesday.

“Once we get past Labor Day, we should see gas falling by 10 to 15 cents a month,” reaching $2 in many places by December, Tom Kloza, chief oil analyst with the Oil Price Information Service, tells the news outlet.

The deal announced Tuesday allows Iran to return to the oil market. “Expectations of an agreement have already pulled oil prices lower,” the Financial Times said.

The timetable for ending the sanctions against Iran is uncertain. The ambiguity “whipsawed” prices Tuesday, as traders struggled to understand the deal’s implications, reports MarketWatch.

As of Tuesday, according to AAA, average prices for a gallon of regular gas in Lancaster County were $2.747, down from $2.791 from a month ago and $3.613 last year.

In the runup to the July 4 holiday, gas was $1 a gallon cheaper than it was last summer.

Agencies/Canadajournal