Florida gas prices could fall below $4: Iran says Strait of Hormuz is reopening

What Iran reopening strait means for gas prices

As Iran announces the reopening of the Strait of Hormuz, the price of oil has already started to plummet. FOX 13's Kylie Jones reports.

TAMPA, Fla. - As Iran announces the reopening of the Strait of Hormuz, the price of oil has already started to plummet.

The backstory:

Fuel experts said the price of oil dropped about 11% on Friday, indicating lower gas prices are on the way.

Iranian leaders said the Strait of Hormuz will reopen for all commercial vessels for the remainder of the 10-day ceasefire between Israel and Lebanon.

The Strait of Hormuz closed amid the conflict. A substantial portion of the world's oil and liquified natural gas passes through it to be distributed around the world.

By the numbers:

According to GasBuddy, the average price of gas in Florida is around $4.06 per gallon. Florida ranked among the states with higher average gas prices recently.

In Florida, Tampa and Sarasota are among the major cities with average prices over $4 per gallon.

"Prices so far today, about $0.02 lower than yesterday," Patrick De Haan, the head of petroleum analysis with GasBuddy, said. "The average, $4.07. Motorists should not be in a hurry to fill their tanks up because over the weekend, prices will likely fall back below $4. You probably could see some stations in the next week or two getting back into the $3.60s."

With the Strait of Hormuz reopening, fuel experts say Americans could start seeing lower gas prices immediately.

"Gas prices this Memorial Day could be in the $3.65 to $3.95 range," De Haan said. "That could improve by July 4. Prices on average could slip to $3.50 to $3.80 for July 4, and by the end of the summer, average prices in Tampa could slip to $3.35 to $3.75, but that's based on, currently, very optimistic outcomes. That's based on the strait reopening, no hurricanes."

What they're saying:

De Haan says the plummeting prices are encouraging for drivers and a lot of other major industries.

"Not only are our flights coming to Tampa going to soon see a big decrease in the price of jet fuel, but the trucks that are taking goods to the market, to the grocery store are going to see a nice decline here as well," De Haan said.

De Haan says it will likely take a couple of months for the impacts to trickle down the supply chain.

"Once the strait reopens, keep in mind, it's not just a light switch," De Haan said. "It's not going to drastically change overnight. The world is still about a billion barrels of oil short of where it would be, had the strait been reopened much earlier or open this whole time."

What's next:

De Haan says diesel prices will also start going down, but that it could take weeks or even a few months for prices to drop below $5 per gallon.

De Haan says it's unpredictable how long the lower prices will last, depending on talks between the U.S. and Iran.

"In a matter of two weeks, prices in Tampa could be in the $3.50s and $3.60s at some stations, and whether or not that sticks, is really going to be contingent on any new developments over the next few days and weeks," De Haan said.

You can compare gas prices in your area here.