00:00This is breaking news as of this morning.
00:02The United States and Iran have agreed to a two-week ceasefire,
00:06and the Strait of Hormuz is expected to reopen for oil tanker traffic.
00:10The deal was brokered through Pakistani intermediaries and announced overnight.
00:15Iran has agreed to allow free transit of oil through the strait,
00:19the narrow waterway through which 20% of the world's oil supply flows,
00:23in exchange for a pause in U.S. strikes.
00:26For American consumers who have watched gas prices climb to over $4 a gallon,
00:31this is the news you have been waiting for.
00:34But experts are urging caution.
00:36Gas prices at the pump will not fall immediately.
00:40Here is why.
00:41Oil must flow through the strait, be refined, shipped, and distributed to petrol stations.
00:47That process takes weeks,
00:49meaning price relief is likely to come in May rather than today.
00:52EIA forecasts gas could still peak at $4.30 per gallon this month before falling.
01:00J.P. Morgan's worst-case scenario, $5 a gallon,
01:04appears less likely with the ceasefire in place.
01:07The ceasefire lasts two weeks.
01:10If talks break down, prices could surge again.
01:12For now, the strait is opening.
01:15The oil is moving.
01:16And American families may finally start to see some relief at the pump this spring.
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