Oil and gas supplies could take months to return to normal after Iran deal, energy experts say
Summary
After the recent deal to end the Iran war and reopen the Strait of Hormuz, experts say it will take several months for oil and gas supplies to return to normal. The process is slow due to halted shipments, refinery delays, and the need for confidence in safe travel through the strait.Key Facts
- The Strait of Hormuz, through which about 20% of the world’s oil passes, had been closed due to conflict.
- Oil tankers have been stuck in the Persian Gulf for over three months, unable to pass safely.
- Restarting oil shipments requires clearing stranded ships, loading new tankers, and securing insurance.
- Traveling, refining, and delivering oil takes months even after shipments resume.
- Some Middle Eastern countries paused oil production after running out of storage space.
- Countries like Saudi Arabia and the UAE may resume production faster due to alternate delivery routes.
- More affected countries, such as Iraq, could take up to a year to fully restart oil production.
- Investment in oil infrastructure stopped during the strait’s closure, slowing recovery efforts.
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