Gas prices: Can the national average stay under $4 per gallon?
The national average price for a gallon of gasoline stands at $3.42
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If the U.S. and other Western powers make a new nuclear deal with Iran, it could keep the national average cost of gasoline under $4 a gallon, according to an industry expert.
"It's really the only ‘magic wand’ that Biden might have to ease long-term oil prices," Patrick De Haan, head of petroleum analysis for GasBuddy, told FOX Business.
Currently, the national average price for a gallon of gasoline stands at $3.42, an increase of 12.3 cents from a month ago and 97.5 cents per gallon higher than a year ago, according to GasBuddy's latest data. AAA's average is slightly higher at $3.46.
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In 2018, President Donald Trump withdrew the U.S. from Tehran’s 2015 nuclear deal, which granted Iran sanctions relief in exchange for curbs on its nuclear program. Instead, Trump imposed sweeping sanctions on Iran, including against its oil sector.
President Donald Trump (AP Photo/Evan Vucci/File)
Striking a new deal with Iran could end those sanctions, potentially allowing "over a million barrels per day and potentially several million floating at sea," to hit the global market, according to De Haan.
If that happens, it could potentially keep oil prices in check, he said.
On Wednesday morning, West Texas Intermediate crude oil was trading at $89.79 a barrel.
"Everyone else is tapped out," De Haan added, noting that "OPEC can't meet their quotas and the US oil production is slow to return."
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On Tuesday, Negotiators from Iran and the remaining parties to the agreement – Britain, France, Germany, Russia and China – got back to work seeking a deal reviving the accord, with Iran insisting that the United States and its allies promise to allow it to export its crude oil.
The U.S. has participated indirectly in the talks, although Biden has signaled that he wants to rejoin the deal.
Officials say the talks are reaching their final stage, though it’s unclear how long that might take. The negotiations have already dragged on for months.
The Associated Press contributed to this report.