Uncertainty overseas could affect your wallet this summer

Changes in Washington D.C. may impact gas prices
Published: May. 9, 2018 at 3:10 PM CDT|Updated: May. 10, 2018 at 5:43 AM CDT
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SHREVEPORT-BOSSIER PARISH, LA (KSLA) - The Trump administration announced on Tuesday that the U.S. would pull out of the Iran Deal leaving many wondering what that will mean for gas prices.

According to the New York Post, prices have already risen in the last month as suppliers braced for the announcement.

Here in the Shreveport area, the average cost of gas is around $2.50 a gallon, according to GasBuddy.com

LSUS Economics Professor, Tim Shaughnessy, says prices often rise during the summer time anyway.

"Like anything, gas prices are determined by supply and demand. So anytime summertime rolls around, the demand is going to be higher. More people are on vacation, traveling. You always see a spike right before Memorial Day," said Shaughnessy.

Shaughnessy says while the political arena can often affect gas prices, it can also stem from investors looking ahead.

"They're going to build it into their decisions that this policy change has happened," said Shaughnessy.

"It's going to affect the supply of gasoline when people realize the U.S. may be doing something to restrict the amount of trade in this industry, even if the effects of the policy change hasn't actually happened yet."

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