Oil Prices Drop as Strait of Hormuz Reopens

0:00Iran fully reopened the straight-of-form moves on Friday, sparking in over 8% drop in oil prices worldwide. Here in the Bay Area, most gas stations are now under $6 a gallon, though Sonoma County is holding out higher. That closure during the Iran War had choked global supplies, inject up costs everywhere. Now with a two-week ceasefire in place, ships can use set routes again, stocks are soaring, and US oil hit its lowest price since the fighting. Starting, drivers are feeling the pinch hard, like one local saying her tank costs $40 twice a week now, up from 30 once a week. Station owners report drops of 20 to 30 cents at some pumps, but the CEO of National Petroleum warns it'll take two or three months for full. Normalcy, thanks to slow supply chains. Oil ripples into everything from grocery prices to delivery fees and air travel, where jet fuel has doubled since the war kicked off. Airlines, like Air Canada, are cutting flights from Toronto and Montreal, because it is not profitable anymore.

1:02Experts, like a Santa Clara University professor, say recovery could match the disruption time, with lingering uncertainty slowing folks down. President Trump expects a US Iran peace deal in the next day or two, setting the stage for prices to ease back steady. California news today, powered by AI bringing you what matters. I'm Cory with the story.