Higher gas prices could follow Trump's exit from the Iran deal

President Trump's decision to withdraw the U.S. from the Iran deal has lots of diplomatic consequences. But it also means you might pay more to fill your tank.

Iran, which is one of the world's largest oil producers, started pumping out another 1 million barrels of oil per day when economic sanctions were lifted in 2016. Now that the U.S. is out of the deal, some of that oil's expected to leave the market, which could mean higher gas prices.

As of Thursday, the national average for gas was $2.84 per gallon, up about $0.50 from last year. That figure could jump higher depending on where oil prices go. 

West Texas Intermediate, which serves as the benchmark in oil pricing, is sitting around $71 a barrel — a more than $20 increase from this time last year. 

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former gas stations transformed
Shell fuel pumps are seen in the front garden of Manor Road Garage petrol station built in an art deco style. After the buisness closed the building decayed until being converted into flats in East Preston, West Sussex, Britain, April 28, 2016. REUTERS/Toby Melville 
Shell fuel pumps are seen in the front garden of Manor Road Garage petrol station built in an art deco style. After the buisness closed the building decayed until being converted into flats in East Preston, West Sussex, Britain, April 28, 2016. REUTERS/Toby Melville 
A former petrol station, now used as a furniture and car sales room as well as vehicle repairs centre, is seen on a minor road near Telford, Britain, April 5, 2016. REUTERS/Toby Melville 
A cyclist rides past a boarded-up petrol station, used as an open-air cinema as well as a car wash since its closure, now awaiting commercial redevelopment in a prime real estate location in the Clerkenwell district of central London, Britain, October 26, 2016. REUTERS/Toby Melville 
A man walks past an employee arranging bouquets at a florist business on the site of a former petrol station in north London, Britain, October 26, 2016. REUTERS/Toby Melville 
A London bus and taxi drive past a former petrol station forecourt, now used as a bar, cafe and food court area in Shoreditch in east London, Britain, March 8, 2016. REUTERS/Toby Melville 
A modern classic Ford car is seen through the showroom window of a former petrol station, now used as a furniture and car sales room as well as vehicle repairs centre, near Telford, Britain, April 5, 2016. REUTERS/Toby Melville 
Visitors and car enthusiasts walk in front of restored Shell petrol pumps as they attend the Goodwood Revival historic motor racing festival, an annual event celebrating a mid-twentieth century heyday of the racing circuit, near Chichester, Britain, September 9, 2016. REUTERS/Toby Melville 
A woman walks into a burger restaurant sited on the forecourt of Bloomsbury Service Station, built in 1926 and closed down in 2006, in London, Britain, February 11, 2016. REUTERS/Toby Melville 
The Black Cat Garage, which has been shut for over a decade, is seen on a minor road near Tiverton in Devon, Britain, July 29, 2016. REUTERS/Toby Melville 
An old petrol pump is seen at the entrance to a house in a village near Stroud in the Cotswolds, Britain October 11, 2016. REUTERS/Toby Melville 
A disused petrol pump hose is seen hanging outside a front door next to an independent garage which shut two years ago with an application to convert to residential properties, on a street front in Olney, Britain, October 11, 2016. REUTERS/Toby Melville 
A customer sign is seen at the Black Cat Garage which has been shut for over a decade, on a minor road near Tiverton, Devon, Britain, July 29, 2016. REUTERS/Toby Melville 
A rusting old petrol pump outside a long-closed rural village petrol station is seen on a minor road near Trowbridge, Britain, October 21, 2016. REUTERS/Toby Melville 
Rusting old petrol pumps outside a long-closed rural village petrol station are seen on a minor road near Trowbridge, Britain, October 21, 2016. REUTERS/Toby Melville 
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This all comes at a time when the global oil supply is slimming down. For the past five months, OPEC members have been enforcing production cuts that they plan to continue into the end of the year. On top of that, instability in Venezuela — which holds the most oil reserves in the world — has caused the country to hit close to a 30-year low in crude production. 

Saudi Arabia — the de facto leader of OPEC — released a statement on Tuesday saying it will work "to mitigate the impact of any potential supply shortages."

But we still don't know how the other nations in the Iran deal will respond — new U.S. sanctions might not scare off countries like Russia and China from buying Iranian oil. 

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