Fox 8: Gas prices were expected to rise above $5 per gallon this summer, but instead they’re falling—potentially to below $3. The predictions were off because gas and oil prices depend on both current market fundamentals as well as what people think will happen in the future, explained economics professor Robin Dubin. “Three months ago, people were worried that Iran would close the Straits of Hormuz,” she said. “Well that would prevent 20 percent of the world’s oil supply from reaching the market, which would certainly cause prices to spike.”
