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Iran nuclear deal could drive down gas prices

Economists are predicting news of an historic nuclear deal between Iran and six world powers could lead to gas prices as low as $2.00 per gallon by winter.

Crude oil prices fell three percent Wednesday on the heels of the deal which would restrict Iran’s nuclear development in exchange for the lifting of international sanctions.

The lifting of sanctions would allow Iran export oil directly to the U.S. For the first time since 1995.

This would increase America’s oil supply and therefore drive down prices, explained Dan Cravens, a regional economist for the Idaho Department of Labor.

“There’s anticipation. Markets react very quickly to news,” said Cravens.

Cravens said lower gas prices could spur tourism, helping Yellowstone and other attractions around eastern Idaho.

But he cautioned it could also force oil fields in North Dakota to decrease production, sending many workers back to the Gem State.

“A lot of the workers that left Idaho may come back and I think have already started coming back and have for the last several months,” said Cravens.

Gas prices in Idaho currently average $3.04. That’s well below the national average of $2.77.

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