When Will Gasoline Prices Return to Pre-War Levels?

AI Summary

Gasoline prices in the UK have started to decline after spikes caused by the war with Iran and disruptions in the Strait of Hormuz. The U.S.-Iran agreement has influenced market dynamics, leading traders to price in lower crude prices, though a full return to pre-war levels may take several months.

Gasoline prices have started to fall, and that is welcome news for drivers. After months of pain at the pump following the war with Iran and the disruption of traffic through the Strait of Hormuz, even modest relief is noticeable. But falling from crisis levels is not the same thing as returning to normal. That distinction may define the next several months in the oil market. The developing U.S.-Iran agreement has given traders a reason to mark down crude prices. Markets are forward-looking, and they have quickly priced in a scenario in which the…