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Analysts fear pulling out of the Iran deal may have a big effect on Americans' wallets — namely rising gas prices.
They're already inching close to $3 a gallon ahead of the summer travel season. But at least one expert says it may not be as bad as some say.
Nationwide, gas prices have been steadily climbing toward the $3 a gallon mark, and it's not gone unnoticed.
In the Metroplex, the average cost of a gallon of regular sits at around $2.65. In just the past four weeks, gas prices have gone up by nearly 25 cents, according to AAA.
Bernard Weinstein of SMU’s Cox School of Business says the increase is simple supply and demand. Healthy economies have increased demand, and OPEC and Russia have cut production.
But some experts warn pulling out of the Iran deal will bring an even larger jump in gas prices than what we've seen. Weinstein is not among them.
“Barring some unforeseen political development like a conflagration in the Middle East, I don't see prices going up to those levels,” Weinstein said. “Bottom line: I don't think the Iran crisis or the Iran sanctions are going to have that much impact on oil or gasoline prices."
Gas prices usually spike during the summer. One local gas station manager says the president's announcement had been expected.
"Prices have been going up the last two weeks because people have been expecting this to go through that the Iran deal to get scrapped,” said Erik Kotanchik, a gas station store manager. “It has been going up. But hopefully, it won't go up that much more from here on out."
AAA is predicting that gas will top out somewhere around $3 a gallon this summer. If that's the case, the political effect should be minimal.
But as the mid-term elections approach, high gas prices could be a factor as President Trump and Republicans try to hold off Democratic efforts to take back control of one or both houses of Congress.