Friday, April 12, 2024

Gas prices rise after White House announces withdrawal from Iran nuclear deal

Gas prices are continuing to climb, rising more than 8 cents in Hampton Roads following the United States’ withdrawal from the Iran nuclear deal.

AAA expects drivers across Virginia and the country to continue seeing rising gas prices after the U.S. reimposed sanctions on Iran last week, AAA Tidewater said.

The U.S., five other countries and the European Union entered the Iran nuclear deal in 2015 under President Barack Obama. The deal lifted economic sanctions on Iran in exchange for the country downsizing its nuclear program.

With sanctions expected to be back in place within the next three to six months, Iran’s crude exports are forecast to decrease, pushing oil prices higher, AAA said.

Gas prices could reach $3 per gallon this summer.

In Hampton Roads, gas prices averaged $2.70 per gallon Wednesday. Virginia’s gas prices averaged $2.67 and nation prices leveled at $2.87.

Hampton Roads’ gas prices are 8 cents more than last week, 18 cents more than last month and 59 cents higher than last year.

Nationally, 36 states are seeing gas prices that are a nickel or more expensive than the previous week.

“The Administration’s move combined with the switchover to summer blend, growing global demand and shrinking supply continues to fuel pump prices as we approach the summer driving season,” said Georjeane Blumling, spokeswoman for AAA Tidewater Virginia.

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