What the peace deal between US and Iran means for gas prices

W. P. Carey experts explain why lower fuel costs may take time to materialize.

In this story aired June 15, 2026, on Arizona's Family, economist Dennis Hoffman and supply chain expert Hitendra Chaturvedi explained why lower oil prices may not immediately translate into lower prices at the pump. Hoffman said the timeline will depend on how quickly the Strait of Hormuz can be cleared of mines and whether shipping companies regain confidence in using the route:

Their comfort actually is measured by the insurance markets, because they have to pay for insurance before they transgress the strait.

— Dennis Hoffman, director of ASU’s Office of the University Economist

The inventory that is already built up in the system has been bought at older, higher prices. So, many of these gas stations need to sell that without making a loss.

— Hitendra Chaturvedi, professor of practice in the NASPO Department of Supply Chain Management