Bay Area experts weigh in on how US, Iran's temporary ceasefire plan will impact consumers

SAN FRANCISCO (KGO) -- After over a month of war, the U.S. and Iran agreed to a temporary ceasefire Tuesday.

The announcement comes just hours before President Trump's 5 p.m. deadline for the Iranian government to reach an agreement in a conflict that's reshaped the Middle East.

"I think we will see an Iran that is militarily weaker. There's no doubting the fact that Iran's airforce, Iran's navy have been hit very hard by the United States," said Karthika Sasikumar.

Sasikumar is a political science professor at San Jose State University.

She says, despite the two-week ceasefire, there are still many details to work out.

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One of them being long-term access to the critical shipping route through the Strait of Hormuz.

Another, Iran's nuclear program - which President Trump says cannot continue.

"They're even less likely now to give up their potential to have a nuclear weapons program than they were before these hostilities began," said Sasikumar.

Since the fighting began, the price of oil has increased substantially across the U.S.

It has started dropping since the ceasefire was announced.

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But UC Berkeley professor Severin Borenstein believes it will take a long time before drivers see prices at the pump drop to pre-war levels.

"Because, first of all, there's a lot of uncertainty about what's going to happen in two weeks. And, secondly, we don't know how much damage has been done to the oil fields and other oil infrastructure during this war," Borenstein said.

While it's unclear at this point whether the ceasefire will hold, one thing that seems certain is the war has changed the Middle East.

And depending on what happens next, Sasikumar says the region could be in for a period of increased uncertainty.

"It's been a delicate balancing act for the United States. Because the U.S. has tried to balance the need to keep its ally Israel safe with the need to keep the oil flowing, to keep the Gulf allies happy. But that balance may no longer be possible," Sasikumar said.