The long-awaited nuclear deal with Iran was finally announced today, to both applause and dismay from leaders around the world. The multi-national agreement might have huge implications for the wallets of American consumers, who could see the price of gas drop down to $2 a gallon.
"Once we get past Labor Day, we should see gas falling by 10 to 15 cents a month," Tom Kloza, chief oil analyst with the Oil Price Information Service, told CNN. “By December a lot of places are going to see gasoline at $2 or less.”
Iran has been barred from selling oil to the United States since 1995, but now the Middle Eastern nation could add as much as 500,000 barrels of oil per day globally, driving the price down.
Despite the promise of low costs at the tank, it could take some time for consumers to see a result. The sanctions won’t be completely lifted until 2016, Vox reported. After Iran sells off its existing stock of oil, about 30 to 37 million barrels, it could take some time for Iran’s oil fields to start producing at their pre-sanction levels.
Iran has the fourth-largest amount of oil in the world - 158 billion barrels of proved reserves.