Iran Deal Impact On Oklahoma
OKLAHOMA CITY - As the world watches what Iran will do in the wake of the U.S. leaving the Iran Nuclear Deal, Oklahomans are watching what it will do to our economy.
The energy sector is Oklahoma's largest money maker, nearly a quarter of all tax dollars can be traced back to oil and gas. That means the fall out of breaking the deal could impact every person in the state.
Less than 24 hours since President Trump pulled the US out of the Iran Nuclear deal, the markets are already reacting.
Oil prices hitting a four-year high, topping out at $75 a barrel, and gas prices in Oklahoma City are already inching closer to $3 a gallon.
“We've seen more demand of the world for energy than we anticipated, so that's going to put an upward pressure on prices,” said Steve Agee.
Economists like Oklahoma City University's Steve Agee say the uncertainty of how the Iranian regime will react could cause serious turmoil for Oklahoma oil producers.
“You might see some spikes up or down in the oil markets in the next few weeks, but I think over time, I think you will see increases in prices in the next year. It's not going to bottom out, but it's probably going to moderate it and maybe even fall off a little bit as supplies are brought to the market,” said Agee.
But it's not just energy. Oklahoma manufacturing could also take a hit. Airplane maker Boeing, which employs thousands in the state, has nearly $20 billion in deals with Iran's state airliner.
In a statement, Boeing officials said in part, "Following [the] announcement, we will consult with the U.S. Government on next steps. As we have throughout this process, we'll continue to follow the U.S. Government's lead."
Analysts aren't sure just how high or low oil or gasoline prices will go, but what they say they are certain of is that uncertainty going forward will affect Oklahoma's economy in the months to come.