Gas prices are expected to tank by 12 to 15 cents on Wednesday, according to an outlook from price specialists at En-Pro.
Prices at the pump are expected to fall to an average of 163.9 to 166.9 cents/litre at local stations in the Greater Toronto Area following weeks of steady increases after the U.S. and Israel’s joint attack on Iran.
This comes after Trump said U.S. envoys have been holding talks with a “respected” Iranian leader, and Iran wants “to make a deal” and extended the deadline for five more days. However, Iranian officials denied any such negotiations, and declared that the American leader had backed down “following Iran’s firm warning.”
“Depends on what President Trump wants to say today. The traders are just following whatever the mood swing they’re reading in today’s news and driving the prices either up or down,” Roger McKnight, chief petroleum analyst with En-Pro, said on Tuesday.
“That’s why I am offering a range of a drop tomorrow because there’s no guarantee on what headlines are going to say tomorrow.”
Relief ripped through financial markets Monday as oil prices eased following severe losses prior to Trump’s announcement. Financial markets have had vicious swings, both up and down, since the war began because of uncertainty about how long it may last.
Trump also said the U.S. would seek to retrieve Iran’s enriched uranium and end its nuclear program as part of a deal, telling reporters: “We want to see no nuclear bomb, no nuclear weapon. Not even close to it.”
The death toll has risen to more than 1,500 people in Iran, more than 1,000 in Lebanon, 15 in Israel and 13 U.S. military members, as well as a number of civilians on land and sea in the Gulf region. Millions of people in Lebanon and Iran have been displaced.
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With files from the Associated Press.