When will prices at the pump start to fall? | CNN Business

Global oil prices have fallen well below their recent peak. But don’t expect to see relief at the pump in the coming days. The war in Iran virtually closed the Strait of Hormuz, choking off about a fifth of the world’s oil. However, oil prices tumbled by 12% on Tuesday after President Donald Trump said he expected the war to end “very soon.” Futures were slightly higher again in Wednesday morning trading but nowhere close to the nearly $120 oil was briefly trading for earlier in the week. Even if oil futures begin to fall back to earth, that doesn’t mean immediate savings at the pump. The cost of a barrel of crude is just one component that goes into setting the price at your local gas station – Americans also pay for refining and shipping gas as well as a variety of taxes. “There’s an old expression – gas prices go up like a rocket and come down like a feather,” said Tom Kloza, an independent oil analyst and advisor to major oil company Gulf Oil. Wholesale gas prices rose by 23% since the start of the war in late February. Meanwhile, retail gas prices have risen 20% since the start of the war to a nearly 22-month high, according to AAA, edging up 4 cents again